0001513162-17-000148.txt : 20170512 0001513162-17-000148.hdr.sgml : 20170512 20170512170133 ACCESSION NUMBER: 0001513162-17-000148 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 56 CONFORMED PERIOD OF REPORT: 20170331 FILED AS OF DATE: 20170512 DATE AS OF CHANGE: 20170512 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRANS LUX Corp CENTRAL INDEX KEY: 0000099106 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS MANUFACTURING INDUSTRIES [3990] IRS NUMBER: 131394750 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-02257 FILM NUMBER: 17839651 BUSINESS ADDRESS: STREET 1: 445 PARK AVENUE STREET 2: SUITE 2001 CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 800-243-5544 MAIL ADDRESS: STREET 1: 445 PARK AVENUE STREET 2: SUITE 2001 CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: TRANS LUX CORP DATE OF NAME CHANGE: 19920703 10-Q 1 form10q.htm FORM 10-Q Form 10-Q

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

 

[X]       QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

 

Commission file number 1-2257

 

TRANS-LUX CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

13-1394750

(State or other jurisdiction of

(I.R.S. Employer

 incorporation or organization)

Identification No.)

445 Park Avenue, Suite 2001, New York, New York

10022

(Address of principal executive offices)

(Zip code)

(800) 243-5544

(Registrant's telephone number, including area code)

 

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes     X      No        

 

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to file and post such files).  Yes     X      No         

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  (check one)

 

Large accelerated filer ___

Accelerated filer ___

Non-accelerated filer ___

Emerging growth company ___

Smaller reporting company        X

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.           

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes               No     X                                          

 

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date.

 

Date                                                       Class                                                 Shares Outstanding

5/11/17                            Common Stock - $0.001 Par Value                                   1,710,671

 


 

 

 

TRANS-LUX CORPORATIONAND SUBSIDIARIES

 

 

 

Table of Contents

 

 

 

Page No.

 

 

Part I - Financial Information (unaudited)

 

 

 

 

Item 1.

Condensed Consolidated Balance Sheets – March 31, 2017 and December 31, 2016 (see Note 1)

1

 

 

 

 

Condensed Consolidated Statements of Operations – Three Months Ended March 31, 2017 and 2016

2

 

 

 

 

Condensed Consolidated Statements of Comprehensive Loss – Three Months Ended March 31, 2017 and 2016

2

 

 

 

 

Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2017 and 2016

3

 

 

 

 

Notes to Condensed Consolidated Financial Statements

4

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

12

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

18

 

 

 

Item 4.

Controls and Procedures

18

 

 

 

Part II - Other Information

 

 

 

 

Item 1.

Legal Proceedings

18

 

 

 

Item 1A.

Risk Factors

19

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

19

 

 

 

Item 3.

Defaults upon Senior Securities

19

 

 

 

Item 4.

Mine Safety Disclosures

19

 

 

 

Item 5.

Other Information

19

 

 

 

Item 6.

Exhibits

20

 

 

 

Signatures

21

 

 

Exhibits

 

 

 

Table of Contents

 

Part I - Financial Information

(unaudited)

 

Item 1.

 

TRANS-LUX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

 

March 31

2017

December 31

2016

In thousands, except share data                       

 

(see Note 1)

ASSETS

 

 

 

 

 

Current assets:

Cash and cash equivalents

$

426

 

$

606

Receivables, net

2,041

3,118

Inventories

 

2,157

 

 

1,893

Prepaids and other assets

 

733

 

 

671

Total current assets

 

5,357

 

 

6,288

Long-term assets:

Rental equipment, net

 

2,813

 

 

3,089

Property, plant and equipment, net

2,350

2,292

Goodwill

 

744

 

 

744

Restricted cash

612

612

Other assets

 

376

 

 

389

Total long-term assets

 

6,895

 

 

7,126

TOTAL ASSETS

$

12,252

 

$

13,414

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:

 

 

 

 

 

Accounts payable

$

1,714

$

1,493

Accrued liabilities

 

6,434

 

 

5,800

Current portion of long-term debt

 

2,008

 

 

2,984

Total current liabilities

 

10,156

 

 

10,277

Long-term liabilities:

Long-term debt, less current portion

 

504

 

 

57

Long-term debt - related party

500

500

Deferred pension liability and other

 

3,599

 

 

3,856

Total long-term liabilities

 

4,603

 

 

4,413

Total liabilities

 

14,759

 

 

14,690

Stockholders' deficit:

Preferred Stock Series A - $20 stated value -  416,500 shares authorized;
   shares issued and outstanding: 0 in 2017 and 2016

 

-

 

 

-

Preferred Stock Series B - $200 stated value -  51,000 shares authorized;
   shares issued and outstanding: 16,512 in 2017 and 2016
   (liquidation preference $3,396,000)

3,302

3,302

Common Stock - $0.001 par value -  10,000,000 shares authorized;
   shares issued: 1,738,511 in 2017 and 2016;
   shares outstanding: 1,710,671 in 2017 and 2016

 

2

 

 

2

Additional paid-in-capital

27,935

27,935

Accumulated deficit

 

(25,097)

 

 

(23,842)

Accumulated other comprehensive loss

(5,586)

(5,610)

Treasury stock - at cost - 27,840 common shares in 2017 and 2016

 

(3,063)

 

 

(3,063)

Total stockholders' deficit

 

(2,507)

 

 

(1,276)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$

12,252

 

$

13,414

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

1


 

Table of Contents

TRANS-LUX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

3 Months Ended

March 31

In thousands, except per share data

2017

 

2016

Revenues:

 

 

 

 

 

Digital product sales

$

2,580

$

3,000

Digital product lease and maintenance

 

497

 

 

837

Total revenues

 

3,077

 

 

3,837

 

 

 

 

 

 

Cost of revenues:

Cost of digital product sales

 

2,366

 

 

2,436

Cost of digital product lease and maintenance

 

362

 

 

526

Total cost of revenues

 

2,728

 

 

2,962

Gross profit

 

349

 

 

875

General and administrative expenses

 

(1,436)

 

 

(1,838)

Operating loss

 

(1,087)

 

 

(963)

Interest expense, net

(174)

(35)

Loss on foreign currency remeasurement

 

(27)

 

 

(134)

Gain on sale/leaseback transaction

33

22

Warrant expense

 

-

 

 

(7)

Loss before income taxes

(1,255)

(1,117)

Income tax expense

 

-

 

 

-

Net loss

$

(1,255)

 

$

(1,117)

 

 

 

 

 

 

Loss per share - basic and diluted

$

(0.76)

 

$

(0.68)

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

TRANS-LUX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited)

 

3 Months Ended

March 31

In thousands

2017

 

2016

Net loss

$

(1,255)

 

$

(1,117)

Other comprehensive income:

Unrealized foreign currency translation gain

 

24

 

 

134

Total other comprehensive income, net of tax

 

24

 

 

134

Comprehensive loss

$

(1,231)

 

$

(983)

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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TRANS-LUX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

3 Months Ended

March 31

In thousands

2017

 

2016

Cash flows from operating activities

 

 

 

 

 

Net loss

$

(1,255)

$

(1,117)

Adjustment to reconcile net loss to net cash provided by (used in)
   operating activities:

 

 

 

 

 

Depreciation and amortization

 

336

 

 

444

Amortization of gain on sale/leaseback transaction

(33)

(22)

Amortization of deferred financing fees

 

37

 

 

-

Loss on foreign currency remeasurement

27

134

Amortization of warrants - stock compensation expense

 

-

 

 

6

Bad debt expense

75

119

Changes in operating assets and liabilities:

 

 

 

 

 

Receivables

1,002

182

Inventories

 

(264)

 

 

(368)

Prepaids and other assets

(49)

(106)

Accounts payable

 

221

 

 

(173)

Accrued liabilities

631

580

Deferred pension liability and other

 

(224)

 

 

(254)

Net cash provided by (used in) operating activities

 

504

 

 

(575)

Cash flows from investing activities

 

 

 

 

 

Proceeds from sale/leaseback transaction

-

1,100

Equipment manufactured for rental

 

-

 

 

(8)

Purchases of property, plant and equipment

 

(118)

 

 

(125)

Net cash (used in) provided by investing activities

 

(118)

 

 

967

Cash flows from financing activities

Proceeds from long-term debt

 

600

 

 

-

Payments of long-term debt

(1,136)

(333)

Payments for deferred financing fees

 

(30)

 

 

-

Net cash used in financing activities

 

(566)

 

 

(333)

Effect of exchange rate changes

 

-

 

 

10

Net (decrease) increase in cash and cash equivalents

(180)

69

Cash and cash equivalents at beginning of year

 

606

 

 

547

Cash and cash equivalents at end of period

$

426

 

$

616

Supplemental disclosure of cash flow information:

 

 

 

 

 

Interest paid

$

127

$

2

Income taxes paid

 

23

 

 

23

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

3


 

Table of Contents

 

TRANS-LUX CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

 

Note 1 Basis of Presentation

 

As used in this report, “Trans-Lux,” the “Company,” “we,” “us,” and “our” refer to Trans-Lux Corporation and its subsidiaries.

 

Financial information included herein is unaudited, however, such information reflects all adjustments (of a normal and recurring nature), which are, in the opinion of management, necessary for the fair presentation of the Condensed Consolidated Financial Statements for the interim periods.  The results for the interim periods are not necessarily indicative of the results to be expected for the full year.  The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”) and therefore do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”).  The Condensed Consolidated Financial Statements included herein should be read in conjunction with the Consolidated Financial Statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.  The Condensed Consolidated Balance Sheet at December 31, 2016 is derived from the December 31, 2016 audited financial statements.

 

There have been no material changes in our significant accounting policies during the three months ended March 31, 2017 from the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2016.

 

Recent Accounting Pronouncements:  In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, Compensation – Retirement Benefits (Topic 715).  ASU 2017-07 improves the presentation of net periodic pension cost and net periodic postretirement benefit cost.  Public business entities should apply the amendments in ASU 2017-07 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years (i.e., January 1, 2018), early application is permitted.  The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.

 

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350).  ASU 2017-04 simplifies the test for goodwill impairment.  Public business entities should apply the amendments in ASU 2017-04 for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years (i.e., January 1, 2020), early application is permitted.  The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.

 

4


 

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In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230).  ASU 2016-18 modifies the presentation of Restricted Cash on the Statement of Cash Flows.  Public business entities should apply the amendments in ASU 2016-18 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years (i.e., January 1, 2018), early application is permitted.  The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.

 

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).  ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases.  A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.  For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.  Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019), early application is permitted.  The Company is in the process of evaluating this pronouncement but has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.

 

In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) by one year.  As a result, the ASU is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for the Company is the first quarter of 2018.  Earlier application is permitted for fiscal years beginning after December 15, 2016, including interim reporting periods within those years, which for the Company is the first quarter of 2017.  The Company is in the process of evaluating this pronouncement but has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.

 

Note 2 Going Concern

 

A fundamental principle of the preparation of financial statements in accordance with GAAP is the assumption that an entity will continue in existence as a going concern, which contemplates continuity of operations and the realization of assets and settlement of liabilities occurring in the ordinary course of business.  This principle is applicable to all entities except for entities in liquidation or entities for which liquidation appears imminent.  In accordance with this requirement, the Company has prepared its accompanying Condensed Consolidated Financial Statements assuming the Company will continue as a going concern.

 

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We do not have adequate liquidity, including access to the debt and equity capital markets, to operate our business.  The Company incurred a net loss of $1.3 million in the three months ended March 31, 2017 and had a working capital deficiency of $4.8 million as of March 31, 2017.  As a result, our short-term business focus continues to be to preserve our liquidity position.  Unless we are successful in obtaining additional liquidity, we believe that we will not have sufficient cash and liquid assets to fund normal operations for the next 12 months.  In addition, the Company’s obligations under its pension plan exceeded plan assets by $4.4 million at March 31, 2017 and the Company has a significant amount due to its pension plan over the next 12 months.  The Company is in default on its 8¼% Limited convertible senior subordinated notes due 2012 (the “Notes”) and 9½% Subordinated debentures due 2012 (the “Debentures”), which have remaining principal balances of $387,000 and $220,000, respectively.  Also, as of March 31, 2017, the Company was not in compliance with the fixed charge coverage ratio covenant related to its Credit Agreement (hereinafter defined), which non-compliance was waived by the Lender.  As a result, if the Company is unable to (i) obtain additional liquidity for working capital, (ii) make the minimum required contributions to the defined benefit pension plan, (iii) make the required principal and interest payments on the Notes and the Debentures and/or (iv) attain and maintain compliance with all debt covenants, there would be a significant adverse impact on the financial position and operating results of the Company.  The accompanying financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amounts and classification of liabilities that may result from the outcome of this uncertainty.  See Note 6 – Long-Term Debt for further details.

 

The Company is seeking additional financing in order to provide enough cash to cover our remaining current fixed cash obligations as well as providing working capital.  However, there can be no assurance as to the amounts, if any, the Company will receive in any additional financings or the terms thereof and the Company has no agreements, commitments or understandings with respect to any such additional financing.  To the extent the Company issues additional equity securities, it could be dilutive to existing shareholders.  In addition, the Company’s current outstanding debt and other obligations could limit its ability to incur more debt.

 

Note 3 – Inventories

 

Inventories consist of the following:

 

 

In thousands

March 31

2017

 

 

December 31

2016

Raw materials

$

1,477

 

$

1,245

Work-in-progress

458

410

Finished goods

 

222

 

 

238

 

$

2,157

 

$

1,893

 

Note 4 – Rental Equipment

 

Rental equipment consists of the following:

 

 

In thousands

March 31

2017

 

 

December 31

2016

Rental equipment

$

15,354

 

$

15,354

Less accumulated depreciation

 

12,541

 

 

12,265

Net rental equipment

$

2,813

 

$

3,089

 

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Depreciation expense for rental equipment for the three months ended March 31, 2017 and 2016 was $276,000 and $408,000, respectively.

 

Note 5 – Property, Plant and Equipment

 

Property, plant and equipment consists of the following:

 

 

In thousands

March 31

2017

 

 

December 31

2016

Machinery, fixtures and equipment

$

2,947

 

$

2,839

Leaseholds and improvements

 

35

 

 

25

 

 

2,982

 

 

2,864

Less accumulated depreciation

 

632

 

 

572

Net property, plant and equipment

$

2,350

 

$

2,292

 

Machinery, fixtures and equipment having a net book value of $2.4 million and $2.3 million at March 31, 2017 and December 31, 2016, respectively, were pledged as collateral under various financing agreements.

 

Depreciation expense for property, plant and equipment for the three months ended March 31, 2017 and 2016 was $60,000 and $36,000, respectively.

 

Note 6 Long-Term Debt

 

Long-term debt consists of the following:

 

 

In thousands

March 31

2017

 

 

December 31

2016

8¼% Limited convertible senior
   subordinated notes due 2012

$

387

 

$

387

9½% Subordinated debentures
   due 2012

220

220

Revolving credit line

 

1,201

 

 

1,805

Term loans

940

872

Term loan – related party

 

500

 

 

500

Total debt

3,248

3,784

Less deferred financing costs

 

236

 

 

243

Net debt

3,012

3,541

Less portion due within one year

 

2,008

 

 

2,984

Net long-term debt

$

1,004

 

$

557

 

On July 12, 2016, the Company entered into a Credit and Security Agreement, as subsequently amended on September 8, 2016, February 14, 2017 and March 28, 2017 (collectively, the “Credit Agreement”), with its wholly-owned subsidiaries Trans-Lux Display Corporation, Trans-Lux Midwest Corporation and Trans-Lux Energy Corporation as borrowers (the “Borrowers”) and SCM Specialty Finance Opportunities Fund, L.P. (the “Lender”) as lender.  Under the Credit Agreement, the Company is able to borrow up to an aggregate of $4.0 million, which includes (i) up to $3.0 million of a revolving loan, at an interest rate of prime plus 4.00% (8.00% and 7.75% at March 31, 2017 and December 31, 2016, respectively), for an equipment purchase, repayment of certain outstanding obligations, including payments to the Company’s pension plan, the purchase of inventory/product and general working capital purposes, and (ii) a $1.0 million term loan, at an interest rate of prime plus 6.00% (10.00% and 9.75% at March 31, 2017 and December 31, 2016, respectively), for the purchase of equipment.  The availability under the revolving loan is calculated based on certain percentages of eligible receivables and inventory.  Due to limited availability at the inception of the Credit Agreement, the Company capped the revolving loan at $2.0 million, while reserving the option to remove the cap when needed.  During 2017, the Company paid down $604,000 of the revolving loan and borrowed the remaining $600,000 on the term loan, of which $1.2 million and $940,000, respectively, were outstanding as of March 31, 2017.  Interest under the Credit Agreement is payable monthly in arrears.  The Credit Agreement also requires the payment of certain fees, including, but not limited to a facility fee, an unused line fee and a collateral management fee.

 

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The Credit Agreement contains financial and other covenant requirements, including, but not limited to, financial covenants that require the Borrowers to maintain a fixed charge coverage ratio of at least 1.1 to 1.0 and a loan turnover rate of no more than 35 days (or 45 days for certain periods).  The Credit Agreement allows the Company to continue to pay dividends on all its Series B Convertible Preferred Stock (the “Preferred Stock”) or any other new preferred stock, if any, which dividends will be excluded as fixed charges until January 12, 2018.  As of March 31, 2017, the Company was in compliance with all financial covenants except the fixed charge coverage ratio, for which the Company’s ratio was 0.9 to 1.0 for the testing period; the non-compliance was waived by the Lender.

 

The Credit Agreement is secured by substantially all of the Borrowers’ assets and expires July 12, 2019, unless earlier terminated by the parties in accordance with the termination provisions of the Credit Agreement.  The foregoing description of the Credit Agreement is included to provide information regarding its terms.  It does not purport to be a complete description and is qualified in its entirety by reference to the full text of the Credit Agreement.

 

The Company has outstanding $387,000 of Notes which are no longer convertible into common shares.  The Notes matured as of March 1, 2012 and are currently in default.  As of March 31, 2017 and December 31, 2016, the Company had accrued $242,000 and $234,000, respectively, of interest related to the Notes, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Notes outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

 

The Company has outstanding $220,000 of Debentures.  The Debentures matured as of December 1, 2012 and are currently in default.  As of March 31, 2017 and December 31, 2016, the Company had accrued $153,000 and $148,000, respectively, of interest related to the Debentures, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Debentures outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

 

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On April 27, 2016, the Company received a $500,000 loan from Carlisle Investments Inc. (“Carlisle”) at a fixed interest rate of 12.00%, which is due to mature on April 27, 2019 with a bullet payment of all principal due at such time.  Interest is payable monthly.  Mr. Elser, a director of the Company, exercises voting and dispositive power as investment manager of Carlisle.

 

On September 8, 2016, the Company entered into a credit agreement with BFI Capital Fund II, LLC (the “BFI Agreement”), pursuant to which the Company could borrow up to $750,000 at a fixed rate of interest of 10.00%, with a maturity date of March 1, 2017.  As of December 31, 2016, the outstanding balance was $492,000.  On March 1, 2017, the Company repaid the loan in full and terminated the BFI Agreement.

 

Note 7 Pension Plan

 

As of December 31, 2003, the benefit service under the pension plan had been frozen and, accordingly, there is no service cost.  As of April 30, 2009, the compensation increments had been frozen and, accordingly, no additional benefits are being accrued under the pension plan.

 

The following table presents the components of net periodic pension cost:

 

 

Three months ended March 31

In thousands

2017

 

2016

Interest cost

$

116

 

$

120

Expected return on plan assets

(179)

(168)

Amortization of net actuarial loss

 

54

 

 

48

Net periodic pension cost

$

(9)

 

$

-

 

As of March 31, 2017, the Company had recorded a current pension liability of $880,000, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets, and a long-term pension liability of $3.5 million, which is included in Deferred pension liability and other in the Condensed Consolidated Balance Sheets.  The minimum required contribution in 2017 is expected to be $660,000.  In 2017, the Company made $220,000 of contributions, all of which was paid subsequent to March 31, 2017.

 

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Note 8 Loss Per Share

 

The following table presents the calculation of loss per share for the three months ended March 31, 2017 and 2016:

 

 

Three months ended March 31

In thousands, except per share data

2017

 

2016

Numerator:

 

 

 

 

 

Net loss, as reported

$

(1,255)

$

(1,117)

Change in dividends accumulated on preferred shares

 

(50)

 

 

(49)

Net loss attributable to common shares

$

(1,305)

 

$

(1,166)

Denominator:

 

 

 

 

 

Weighted average shares outstanding

 

1,711

 

 

1,711

Basic and diluted loss per share

$

(0.76)

 

$

(0.68)

 

Basic loss per common share is computed by dividing net loss attributable to common shares by the weighted average number of common shares outstanding for the period.  Diluted loss per common share is computed by dividing net loss attributable to common shares, by the weighted average number of common shares outstanding, adjusted for shares that would be assumed outstanding after warrants and stock options vested under the treasury stock method.

 

At March 31, 2017 and 2016, the Company had accumulated unpaid dividends of $93,000 and $72,000, respectively, related to the Preferred Stock.

 

On April 18, 2017, the Company declared a semi-annual dividend of $6.00 per share of Preferred Stock aggregating $99,000, which was paid on April 21, 2017.

 

As of March 31, 2017 and 2016, the Company had warrants to purchase 52,000 and 85,300 shares of Common Stock, respectively, outstanding, none of which were used in the calculation of diluted loss per share because their exercise price was greater than the average stock price for the period and their inclusion would have been anti-dilutive.  These warrants could be dilutive in the future if the average share price increases and is greater than the exercise price of these warrants.

 

As of March 31, 2017 and 2016, the Company had 16,512 shares of Preferred Stock outstanding, which were convertible into 330,240 shares of Common Stock, none of which were used in the calculation of diluted loss per share because their conversion price was greater than the average stock price for the period and their inclusion would have been anti-dilutive.  These shares of Preferred Stock could be dilutive in the future if the average share price increases and is greater than the purchase price of these shares of Preferred Stock.

 

Note 9 Contingencies

 

The Company is subject to legal proceedings and claims which arise in the ordinary course of its business and/or which are covered by insurance.  The Company believes that it has accrued adequate reserves individually and in the aggregate for such legal proceedings.  Should actual litigation results differ from the Company’s estimates, revisions to increase or decrease the accrued reserves may be required.

 

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Note 10 Related Party Transactions

 

In addition to the Company’s loan from Carlisle described in Note 6, the Company has the following related party transactions:

 

Yaozhong Shi, a director of the Company, is the Chairman of Transtech LED Company Limited (“Transtech”), which is our primary LED supplier.  The Company purchased $328,000 and $403,000 of product from Transtech in the three months ended March 31, 2017 and 2016, respectively. Amounts payable by the Company to Transtech were $291,000, $0 and $36,000 as of March 31, 2017, December 31, 2016 and March 31, 2016, respectively.

 

On June 30, 2016, the Company entered into a 1-year Trademark Licensing Agreement with Transtech, pursuant to which Transtech paid the Company $72,500 upon signing the agreement and will pay the Company a 3% royalty on any equipment sold using the Company’s trademark. There were no such sales in the three months ended March 31, 2017.

 

Note 11 Business Segment Data

 

Operating segments are based on the Company’s business components about which separate financial information is available and are evaluated regularly by the Company’s chief operating decision makers in deciding how to allocate resources and in assessing performance of the business.

 

The Company evaluates segment performance and allocates resources based upon operating income (loss). The Company’s operations are managed in two reportable business segments: Digital product sales and Digital product lease and maintenance.  Both design and produce large-scale, multi-color, real-time digital displays and LED lighting, which has a line of energy-saving lighting solutions that provide facilities and public infrastructure with “green” lighting solutions that emit less heat, save energy and enable creative designs.  Both operating segments are conducted on a global basis, primarily through operations in the United States.  The Company also has operations in Canada.  The Digital product sales segment sells equipment and the Digital product lease and maintenance segment leases and maintains equipment.  Corporate general and administrative items relate to costs that are not directly identifiable with a segment.  There are no intersegment sales.

 

Foreign revenues represent less than 10% of the Company’s revenues in 2017 and 2016.  The foreign operation does not manufacture its own equipment; the domestic operation provides the equipment that the foreign operation leases or sells.  The foreign operation operates similarly to the domestic operation and has similar profit margins.  Foreign assets are immaterial.

 

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Information about the Company’s operations in its two business segments for the three months ended March 31, 2017 and 2016 is as follows:

 

 

Three Months Ended March 31

In thousands

2017

 

2016

Revenues:

 

 

 

 

 

Digital product sales

$

2,580

$

3,000

Digital product lease and maintenance

 

497

 

 

837

Total revenues

 

3,077

 

 

3,837

Operating (loss) income:

 

 

 

 

 

Digital product sales

$

(476)

$

(360)

Digital product lease and maintenance

 

71

 

 

269

Corporate general and administrative expenses

 

(682)

 

 

(872)

Total operating loss

 

(1,087)

 

 

(963)

Interest expense, net

(174)

(35)

Loss on foreign currency remeasurement

 

(27)

 

 

(134)

Gain on sale/leaseback transaction

33

22

Warrant expense

 

-

 

 

(7)

Loss before income taxes

(1,255)

(1,117)

Income tax expense

 

-

 

 

-

Net loss

$

(1,255)

 

$

(1,117)

 

Note 12 Subsequent Events

 

The Company has evaluated events and transactions subsequent to March 31, 2017 and through the date these Condensed Consolidated Financial Statements were included in this Form 10-Q and filed with the SEC.

 

As discussed in Notes 2 and 6, the Company received a waiver of its non-compliance with the fixed charge coverage ratio in the Credit Agreement.

 

As discussed in Note 7, subsequent to March 31, 2017, the Company made $220,000 of pension plan contributions.

 

As discussed in Note 8, subsequent to March 31, 2017, the Company declared a semi-annual dividend of $6.00 per share of Preferred Stock aggregating $99,000, which was paid on April 21, 2017.

 

Item 2.             Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Overview

 

Trans-Lux is a leading supplier of LED technology for displays and lighting applications.  The essential elements of these systems are the real-time, programmable digital displays and lighting fixtures that we design, manufacture, distribute and service.  Designed to meet the digital signage solutions for any size venue’s indoor and outdoor needs, these displays are used primarily in applications for the financial, banking, gaming, corporate, advertising, transportation, entertainment and sports markets.  The Company’s LED lighting fixtures offer energy-saving lighting solutions that feature a comprehensive offering of the latest LED lighting technologies that provide facilities and public infrastructure with “green” lighting solutions that emit less heat, save energy and enable creative designs.  The Company operates in two reportable segments: Digital product sales and Digital product lease and maintenance.

 

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The Digital product sales segment includes worldwide revenues and related expenses from the sales of both indoor and outdoor digital display signage and LED lighting solutions.  This segment includes the financial, government/private, gaming, scoreboards and outdoor advertising markets.  The Digital product lease and maintenance segment includes worldwide revenues and related expenses from the lease and maintenance of both indoor and outdoor digital display signage.  This segment includes the lease and maintenance of digital display signage across all markets.

 

Going Concern

 

We do not have adequate liquidity, including access to the debt and equity capital markets, to operate our business.  As a result, our short-term business focus has been to preserve our liquidity position.  Unless we are successful in obtaining additional liquidity, we believe that we will not have sufficient cash and liquid assets to fund normal operations for the next 12 months.  In addition, the Company’s obligations under its defined benefit pension plan exceeded plan assets by $4.4 million at March 31, 2017, including $880,000 of minimum required contributions due over the next 12 months.  The Company is in default on its Notes and Debentures, which have remaining principal balances of $387,000 and $220,000, respectively.  As a result, if the Company is unable to (i) obtain additional liquidity for working capital, (ii) make the minimum required contributions to the defined benefit pension plan, (iii) make the required principal and interest payments on the Notes and the Debentures and/or (iv) attain and maintain compliance with all debt covenants, there would be a significant adverse impact on the financial position and operating results of the Company.

 

Moreover, because of the uncertainty surrounding our ability to obtain additional liquidity and the potential of the noteholders and/or trustees to give notice to the Company of a default on either the Debentures or the Notes, our independent registered public accounting firm has issued an opinion on our December 31, 2016 Consolidated Financial Statements that states that the Consolidated Financial Statements were prepared assuming we will continue as a going concern and further states that the uncertainty regarding the ability to make the required principal and interest payments on the Notes and the Debentures, in addition to the significant amount due to the Company’s defined benefit pension plan over the next 12 months, net losses and working capital deficiencies, raises substantial doubt about our ability to continue as a going concern.  See Note 2 to the Condensed Consolidated Financial Statements – Going Concern.

 

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Results of Operations

 

Three Months Ended March 31, 2017 Compared to Three Months Ended March 31, 2016

 

The following table presents our Statements of Operations data, expressed as a percentage of revenue for the three months ended March 31, 2017 and 2016:

 

 

Three months ended March 31

In thousands, except percentages

2017

 

2016

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Digital product sales

$

2,580

83.8

%

$

3,000

78.2

%

Digital product lease and maintenance

 

497

 

16.2

%

 

 

837

 

21.8

%

Total revenues

 

3,077

 

100.0

%

 

 

3,837

 

100.0

%

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

Cost of digital product sales

2,366

76.9

%

2,436

63.5

%

Cost of digital product lease and maintenance

 

362

 

11.8

%

 

 

526

 

13.7

%

Total cost of revenues

 

2,728

 

88.7

%

 

 

2,962

 

77.2

%

Gross profit

 

349

 

11.3

%

 

 

875

 

22.8

%

General and administrative expenses

 

(1,436)

 

(46.6)

%

 

 

(1,838)

 

(47.9)

%

Operating loss

 

(1,087)

 

(35.3)

%

 

 

(963)

 

(25.1)

%

Interest expense, net

(174)

(5.7)

%

(35)

(0.9)

%

Loss on foreign currency remeasurement

 

(27)

 

(0.9)

%

 

 

(134)

 

(3.5)

%

Gain on sale/leaseback transaction

33

1.1

%

22

0.6

%

Warrant expense

 

-

 

-

%

 

 

(7)

 

(0.2)

%

Loss before income taxes

(1,255)

(40.8)

%

(1,117)

(29.1)

%

Income tax expense

 

-

 

-

%

 

 

-

 

 -

%

Net loss

$

(1,255)

 

(40.8)

%

 

$

(1,117)

 

(29.1)

%

 

Total revenues for the three months ended March 31, 2017 decreased $760,000 or 19.8% to $3.1 million from $3.8 million for the three months ended March 31, 2016, primarily due to decreases in Digital product sales and in Digital product lease and maintenance.

 

Digital product sales revenues decreased $420,000 or 14.0%, primarily due to a reduction in the scoreboard and lighting markets.

 

Digital product lease and maintenance revenues decreased $340,000 or 40.6%, primarily due to the continued expected revenue decline in the older outdoor display equipment rental and maintenance bases acquired in the early 1990s.  The financial services market continues to be negatively impacted by the current investment climate resulting in consolidation within that industry and the wider use of flat-panel screens for smaller applications.

 

Total operating loss for the three months ended March 31, 2017 increased $124,000 or 12.9% to $1.1 million from $963,000 for the three months ended March 31, 2016, principally due to the reduction in revenues, offset by a reduction in general and administrative expenses.

 

Digital product sales operating loss increased $116,000 or 32.2% to $476,000 for the three months ended March 31, 2017 compared to $360,000 for the three months ended March 31, 2016, primarily due to the decrease in revenues and a disproportionate decrease in the cost of revenues, offset by a decrease in general and administrative expenses.  The cost of Digital product sales decreased $70,000 or 2.9%, primarily due to the decrease in revenues.  The cost of Digital product sales represented 91.7% of related revenues in 2017 compared to 81.2% in 2016.  The cost of Digital product sales in 2017 includes additional expenses and depreciation related to our new manufacturing facility and equipment which are not being fully absorbed since the facility and equipment are not yet being utilized to full capacity.  Digital product sales general and administrative expenses decreased $234,000 or 25.3%, primarily due to a decrease in payroll and benefits.

 

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Digital product lease and maintenance operating income decreased $198,000 or 73.6%, primarily as a result of the decrease in revenues, offset by a decrease in the cost of Digital product lease and maintenance.  The cost of Digital product lease and maintenance decreased $164,000 or 31.2%, primarily due to a decrease in depreciation expense.  The cost of Digital product lease and maintenance revenues represented 72.8% of related revenues in 2017 compared to 62.8% in 2016.  The cost of Digital product lease and maintenance includes field service expenses, plant repair costs, maintenance and depreciation.  Digital product lease and maintenance general and administrative expenses increased $22,000, primarily due to an increase in the allowance for bad debts and an increase in payroll and benefits.

 

Corporate general and administrative expenses decreased $190,000 or 21.8%, primarily due to a decrease in insurance expenses.

 

Net interest expense increased $139,000, primarily due to an increase in the average outstanding long-term debt, primarily due to the Credit Agreement.

 

Warrant expense is attributable to the amortization of equity warrants granted to directors in 2013.

 

The effective tax rate for the three months ended March 31, 2017 and 2016 was 0.0%.  Both the 2017 and 2016 tax rates are being affected by the valuation allowance on the Company’s deferred tax assets as a result of reporting pre-tax losses.  The income tax expense relates to the Company’s Canadian subsidiary.

 

Liquidity and Capital Resources

 

Current Liquidity

 

The Company has incurred significant recurring losses and continues to have a significant working capital deficiency.  The Company incurred a net loss of $1.3 million in the three months ended March 31, 2017 and had a working capital deficiency of $4.8 million as of March 31, 2017.  As of December 31, 2016, the Company had a working capital deficiency of $4.0 million.  The increase in the working capital deficiency is primarily due to an increase in the deferred portion of annual billings of lease and maintenance contracts, a reduction in accounts receivable, and an increase in accounts payable, offset by a decrease in the current portion of long-term debt and an increase in inventory.

 

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The Company is dependent on future operating performance in order to generate sufficient cash flows in order to continue to run its businesses.  Future operating performance is dependent on general economic conditions, as well as financial, competitive and other factors beyond our control.  As a result, we have experienced a decline in our lease and maintenance bases.  The cash flows of the Company are constrained, and in order to more effectively manage its cash resources, the Company has, from time to time, increased the timetable of its payment of some of its payables.  There can be no assurance that we will meet our anticipated current and near term cash requirements.  Management believes that its current cash resources and cash provided by operations would not be sufficient to fund its anticipated current and near term cash requirements and is seeking additional financing in order to execute our operating plan.  We cannot predict whether future financing, if any, will be in the form of equity, debt or a combination of both. We may not be able to obtain additional funds on a timely basis, on acceptable terms or at all.  The Company has no agreements, commitments or understandings with respect to any such additional financing.  The Company continually evaluates the need and availability of long-term capital in order to meet its cash requirements and fund potential new opportunities.

 

The Company generated cash of $504,000 from operating activities for the three months ended March 31, 2017 and used cash of $575,000 for the three months ended March 31, 2016The Company has implemented several initiatives to improve operational results and cash flows over future periods, including reducing head count, reorganizing its sales department, outsourcing certain administrative functions and expanding its sales and marketing efforts in the LED lighting market.  The Company continues to explore ways to reduce operational and overhead costs.  The Company periodically takes steps to reduce the cost to maintain the digital products on lease and maintenance agreements.

 

Cash and cash equivalents decreased $180,000 in the three months ended March 31, 2017 to $426,000 at March 31, 2017 from $606,000 at December 31, 2016.  The decrease is primarily attributable to payments on the revolving loan of $604,000, the payoff of the BFI Agreement of $492,000, scheduled payments of long-term debt of $40,000 and investment in property and equipment of $118,000, offset by cash provided by operating activities of $504,000 and proceeds of $600,000 received from borrowing on the term loan.  The current economic environment has increased the Company’s trade receivables collection cycle, and its allowances for uncollectible accounts receivable, but collections continue to be favorable.

 

Under various agreements, the Company is obligated to make future cash payments in fixed amounts.  These include payments under the Company’s current and long-term debt agreements, pension plan minimum required contributions, employment agreement payments and rent payments required under operating lease agreements.  The Company has both variable and fixed interest rate debt.  Interest payments are projected based on actual interest payments incurred in 2017 until the underlying debts mature.

 

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The following table summarizes the Company’s fixed cash obligations as of March 31, 2017 for the remainder of 2017 and over the next four fiscal years:

 

In thousands

 Remainder of

 2017

 

 

2018

 

 

2019

 

 

2020

 

 

2021

Long-term debt, including interest

$

2,490

 

$

331

 

$

1,142

 

$

-

 

$

-

Pension plan payments

660

555

361

367

318

Employment agreement obligations

 

413

 

 

100

 

 

-

 

 

-

 

 

-

Estimated warranty liability

83

93

75

48

25

Operating lease payments

 

509

 

 

342

 

 

335

 

 

337

 

 

342

Total

$

4,155

 

$

1,421

 

$

1,913

 

$

752

 

$

685

 

Of the fixed cash obligations for debt for the remainder of 2017, $1.0 million, including interest, of Notes and Debentures remained outstanding as of March 31, 2017 with consideration of an offer by the Company to settle for $121,000 in accordance with the Company’s offer to exchange that closed in July 2016. The Company has no agreements, commitments or understandings with respect to any further such exchanges.  Subsequent to March 31, 2017, the Company made $220,000 of contributions to its pension plan.  The Company is seeking additional financing in order to provide enough cash to cover our remaining current fixed cash obligations as well as providing working capital.  However, there can be no assurance as to the amounts, if any, the Company will receive in any such financing or the terms thereof.  To the extent the Company issues additional equity securities, it could be dilutive to shareholders.  In addition, the Company’s current outstanding debt and other obligations could limit its ability to incur more debt.

 

Subsequent to March 31, 2017, the Company declared a semi-annual dividend of $6.00 per share of Preferred Stock aggregating $99,000, which was paid on April 21, 2017.

 

Pension Plan Contributions

 

In March 2010, 2011 and 2013, the Company submitted to the Internal Revenue Service requests for waivers of the 2009, 2010 and 2012 minimum funding standards for its defined benefit pension plan.  As of March 31, 2017, the Company had fully repaid the amounts deferred for the 2009 and 2010 plan years and has repaid $520,000 of the 2012 plan year waiver, leaving a balance due related to the waivers of $149,000, which is scheduled to be repaid in 2017.  In 2017, the Company made $220,000 of contributions to its pension plan.  At this time, we expect to make our minimum required contributions in 2017 of $660,000; however, there is no assurance that we will be able to make any or all of such remaining payments.  See Note 7 to the Condensed Consolidated Financial Statements – Pension Plan for further details.

 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

 

The Company may, from time to time, provide estimates as to future performance.  These forward-looking statements will be estimates and may or may not be realized by the Company.  The Company undertakes no duty to update such forward-looking statements.  Many factors could cause actual results to differ from these forward-looking statements, including loss of market share through competition, introduction of competing products by others, pressure on prices from competition or purchasers of the Company’s products, interest rate and foreign exchange fluctuations, terrorist acts and war.

 

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Table of Contents

 

Item 3.             Quantitative and Qualitative Disclosures about Market Risk

 

The Company is subject to interest rate risk on its long-term debt.  The Company manages its exposure to changes in interest rates by the use of variable and fixed interest rate debt.  At March 31, 2017, the Company did not have any variable interest rate debt.  In addition, the Company is exposed to foreign currency exchange rate risk mainly as a result of its investment in its Canadian subsidiary. A 10% change in the Canadian dollar relative to the U.S. dollar would result in a currency remeasurement expense fluctuation of approximately $259,000, based on dealer quotes, considering current exchange rates.  The Company does not enter into derivatives for trading or speculative purposes and did not hold any derivative financial instruments at March 31, 2017.

 

Item 4.             Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures.  As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end of the period covered by this report, we have carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Accounting Officer (our principal executive officer and principal accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures.  Our Chief Executive Officer and Chief Accounting Officer has concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management (including our Chief Executive Officer and Chief Accounting Officer) to allow timely decisions regarding required disclosures.  Based on such evaluation, our Chief Executive Officer and Chief Accounting Officer has concluded that these disclosure controls are effective as of March 31, 2017.

 

Changes in Internal Control over Financial Reporting.  There has been no change in the Company’s internal control over financial reporting that occurred in the quarter ended March 31, 2017 and that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

Part II – Other Information

Item 1.             Legal Proceedings

 

None.

 

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Table of Contents

 

Item 1A.          Risk Factors

 

The Company is subject to a number of risks including general business and financial risk factors.  Any or all of such factors could have a material adverse effect on the business, financial condition or results of operations of the Company.  You should carefully consider the risk factors identified in our Annual Report on Form 10-K for the year ended December 31, 2016.  There have been no material changes to those previously disclosed risk factors.

 

Item 2.             Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Item 3.             Defaults upon Senior Securities

 

As disclosed in Note 6 to the Condensed Consolidated Financial Statements – Long-Term Debt, the Company has outstanding $387,000 of Notes which are no longer convertible into common shares.  The Notes matured as of March 1, 2012 and are currently in default.  As of March 31, 2017 and December 31, 2016, the Company had accrued $242,000 and $234,000, respectively, of interest related to the Notes, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Notes outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

 

As disclosed in Note 6 to the Condensed Consolidated Financial Statements – Long-Term Debt, the Company has outstanding $220,000 of Debentures.  The Debentures matured as of December 1, 2012 and are currently in default.  As of March 31, 2017 and December 31, 2016, the Company had accrued $153,000 and $148,000, respectively, of interest related to the Debentures, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Debentures outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

 

As disclosed in Note 6 to the Condensed Consolidated Financial Statements – Long-Term Debt, the Company had outstanding $1.2 million and $940,000 under the Credit Agreement as of March 31, 2017. The Company received a waiver from the lender for our non-compliance with the fixed charge coverage ratio covenant as of March 31, 2017.

 

Item 4.             Mine Safety Disclosures

 

Not applicable.

 

Item 5.             Other Information

 

None.

 

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Item 6.             Exhibits

 

 

10.1     Second Amendment to Credit and Security Agreement, dated as of February 4, 2017 (and effective February 7, 2017), by and among SCM Specialty Finance Opportunities Fund, L.P., Trans-Lux Corporation, Trans-Lux Display Corporation, Trans-Lux Midwest Corporation and Trans-Lux Energy Corporation (incorporated by reference to Exhibit 10.1 of Form 8-K filed February 17, 2017).

 

10.2     Third Amendment to Credit and Security Agreement, dated as of March 28, 2017 (and effective July 12, 2016), by and among SCM Specialty Finance Opportunities Fund, L.P., Trans-Lux Corporation, Trans-Lux Display Corporation, Trans-Lux Midwest Corporation and Trans-Lux Energy Corporation (incorporated by reference to Exhibit 10.1 of Form 8-K filed March 29, 2017).

 

31        Certification of Jean-Marc Allain, President, Chief Executive Officer and Chief Accounting Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

 

32        Certification of Jean-Marc Allain, President, Chief Executive Officer and Chief Accounting Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

 

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Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

TRANS-LUX CORPORATION

(Registrant)

by 

/s/  Jean-Marc Allain

Jean-Marc Allain

President, Chief Executive Officer

and Chief Accounting Officer

by

 /s/  Todd Dupee

Todd Dupee

Vice President and Controller

Date:  May 12, 2017

 

21

EX-31.1 2 exhibit31.htm EXHIBIT 31.1 Exhibit 31

EXHIBIT 31

 

TRANS-LUX CORPORATION

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER AND CHIEF ACCOUNTING OFFICER

PURSUANT TO RULE 13a-14(a) UNDER THE EXCHANGE ACT

 

I, Jean-Marc Allain, certify that:

1.                I have reviewed this quarterly report on Form 10-Q of Trans-Lux Corporation for the quarter ended March 31, 2017;

2.                Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.                Not applicable;

4.                I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15 (f) and 15d-15(f)) for the registrant and have:

a)                designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b)                designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)                evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)                disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.                 I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)                all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)                any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

/s/ Jean-Marc Allain

Date:  May 12, 2017

Jean-Marc Allain

President, Chief Executive Officer and

Chief Accounting Officer

 

EX-32.1 3 exhibit32.htm EXHIBIT 32.1 Exhibit 32

EXHIBIT 32

 

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF ACCOUNTING OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), I, Jean-Marc Allain, President, Chief Executive Officer and Chief Accounting Officer of Trans-Lux Corporation (the “Registrant”), do hereby certify, to the best of my knowledge that:

 

(1) The Registrant’s Annual Report on Form 10-Q for the quarter ended March 31, 2017 being filed with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

            This Certification accompanies this Form 10-Q as an exhibit, but shall not be deemed as having been filed for purposes of Section 18 of the Securities Exchange Act of 1934 or as a separate disclosure document of the Registrant or the certifying officer.

 

 

/s/ Jean-Marc Allain

Date:  May 12, 2017

Jean-Marc Allain

President, Chief Executive Officer and

Chief Accounting Officer

 

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0pt">As used in this report, &#8220;Trans-Lux,&#8221; the &#8220;Company,&#8221; &#8220;we,&#8221; &#8220;us,&#8221; and &#8220;our&#8221; refer to Trans-Lux Corporation and its subsidiaries.</p><br/><p style="FONT-SIZE:12pt; FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:line; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Financial information included herein is unaudited, however, such information reflects all adjustments (of a normal and recurring nature), which are, in the opinion of management, necessary for the fair presentation of the Condensed Consolidated Financial Statements for the interim periods.&#160; The results for the interim periods are not necessarily indicative of the results to be expected for the full year.&#160; The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the &#8220;SEC&#8221;) and therefore do 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In addition, the Company&#x2019;s obligations under its pension plan exceeded plan assets by $4.4 million at March 31, 2017 and the Company has a significant amount due to its pension plan over the next 12 months.&#160; The Company is in default on its 8&#xbc;% Limited convertible senior subordinated notes due 2012 (the &#x201c;Notes&#x201d;) and 9&#xbd;% Subordinated debentures due 2012 (the &#x201c;Debentures&#x201d;), which have remaining principal balances of $387,000 and $220,000, respectively.&#160; Also, <font style="layout-grid-mode: both;">as of March 31, 2017, the Company was not in compliance with the fixed charge coverage ratio covenant related to its Credit Agreement (hereinafter defined), which non-compliance was waived by the Lender.&#160; </font>As a result, if the Company is unable to (i) obtain additional liquidity for working capital, (ii) make the minimum required contributions to the defined benefit pension plan, (iii) make the required principal and interest payments on the Notes and the Debentures and/or (iv) attain and maintain compliance with all debt covenants, there would be a significant adverse impact on the financial position and operating results of the Company.&#160; 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font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">December 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">2016</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; 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font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">1,477 </font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">1,245 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">Work-in-progress</font></p> </td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom">&#160;</td> <td style="height: 15pt; width: 12%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">458 </font></p> </td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom">&#160;</td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom">&#160;</td> <td style="height: 15pt; width: 12%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">410 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">Finished goods</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">222 </font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; 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height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;">&#160;<font style="font-family: times new roman,times,serif; font-size: 10pt; display: none;">Total Inventory</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">2,157 </font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">1,893 </font></p> </td> </tr> </table><br/></div> <table style="width: 550pt; border-collapse: collapse; margin-left: -0.75pt;" width="733" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 70%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">March 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">2017</font></p> </td> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 2%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">December 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">2016</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 8pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">In thousands</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;">&#160;</p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">Raw materials</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">1,477 </font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">1,245 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">Work-in-progress</font></p> </td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom">&#160;</td> <td style="height: 15pt; width: 12%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">458 </font></p> </td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom">&#160;</td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom">&#160;</td> <td style="height: 15pt; width: 12%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">410 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">Finished goods</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">222 </font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">238 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;">&#160;<font style="font-family: times new roman,times,serif; font-size: 10pt; display: none;">Total Inventory</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">2,157 </font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;">&#160;</p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 9pt; font-family: 'Times New Roman','serif'; layout-grid-mode: both; color: black;">1,893 </font></p> </td> </tr> </table> 1477000 1245000 458000 410000 222000 238000 <div style="font-family: Courier; 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height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">March 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2017</font></p> </td> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 2.02%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">December 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2016</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">In thousands</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2.02%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Rental equipment</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">15,354 </font></p> </td> <td style="height: 15pt; width: 2.02%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">15,354 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Less accumulated depreciation</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">12,541 </font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2.02%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">12,265 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Net rental equipment</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2,813 </font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2.02%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">3,089 </font></p> </td> </tr> </table><br/><p style="FONT-SIZE:12pt; FONT-FAMILY:Courier; LAYOUT-GRID-MODE:line; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;">Depreciation expense for rental equipment for the three months ended March 31, 2017 and 2016 was $276,000 and $408,000, respectively.</font></p><br/></div> 276000 408000 <table style="width: 550pt; border-collapse: collapse; margin-left: -0.75pt;" width="733" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 70%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">March 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2017</font></p> </td> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 2.02%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: windowtext 1pt solid; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">December 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2016</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">In thousands</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2.02%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Rental equipment</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">15,354 </font></p> </td> <td style="height: 15pt; width: 2.02%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">15,354 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Less accumulated depreciation</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">12,541 </font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2.02%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">12,265 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Net rental equipment</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2,813 </font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2.02%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">3,089 </font></p> </td> </tr> </table> 15354000 15354000 12541000 12265000 <div style="font-family: Courier; 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font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 1pt 0px; border-style: solid none; border-color: windowtext -moz-use-text-color; height: 30px; width: 12%; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">March 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2017</font></p> </td> <td style="border-width: 1pt 0px 0px; border-style: solid none none; border-color: windowtext -moz-use-text-color -moz-use-text-color; height: 15px; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 1pt 0px; border-style: solid none; border-color: windowtext -moz-use-text-color; height: 30px; width: 12%; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">December 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2016</font></p> </td> </tr> <tr style="height: 15px;"> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; 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font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 12%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">25 </font></p> </td> </tr> <tr style="height: 15px;"> <td style="height: 15px; width: 70%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt; display: none;">Property, plant and equipment, Gross</font></p> </td> <td style="height: 15px; 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width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2,864 </font></p> </td> </tr> <tr style="height: 15px;"> <td style="height: 15px; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Less accumulated depreciation</font></p> </td> <td style="border-width: 0px 0px 1pt; 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border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2,350 </font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2,292 </font></p> </td> </tr> </table> 2947000 2839000 35000 25000 2982000 2864000 632000 572000 <div style="font-family: Courier; font-size: 12pt; "> <p style="FONT-SIZE:12pt; FONT-FAMILY:Courier; LAYOUT-GRID-MODE:line; 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border-style: solid none; border-color: windowtext -moz-use-text-color; height: 28px; width: 12%; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">March 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2017</font></p> </td> <td style="border-width: 1pt 0px 0px; border-style: solid none none; border-color: windowtext -moz-use-text-color -moz-use-text-color; height: 13px; width: 2.04%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 1pt 0px; border-style: solid none; border-color: windowtext -moz-use-text-color; height: 28px; width: 12%; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">December 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2016</font></p> </td> </tr> <tr style="height: 15px;"> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; 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width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">387 </font></p> </td> </tr> <tr style="height: 15px;"> <td style="height: 15px; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">9&#xbd;% Subordinated debentures due 2012</font></p> </td> <td style="height: 15px; 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color: black;">500 </font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2.04%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">500 </font></p> </td> </tr> <tr style="height: 15px;"> <td style="height: 15px; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Total debt</font></p> </td> <td style="height: 15px; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></td> <td style="height: 15px; width: 12%; white-space: nowrap; 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white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">236 </font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2.04%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">243 </font></p> </td> </tr> <tr style="height: 15px;"> <td style="height: 15px; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Net debt</font></p> </td> <td style="height: 15px; 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margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">3,541 </font></p> </td> </tr> <tr style="height: 15px;"> <td style="height: 15px; width: 70%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Less portion due within one year</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; 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height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2,984 </font></p> </td> </tr> <tr style="height: 15px;"> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 70%; white-space: nowrap; 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(the &#8220;Lender&#8221;) as lender.&#160; Under the Credit Agreement, the Company is able to borrow up to an aggregate of $4.0 million, which includes (i) up to $3.0 million of a revolving loan, at an interest rate of prime plus 4.00% (8.00% and 7.75% at March 31, 2017 and December 31, 2016, respectively), for an equipment purchase, repayment of certain outstanding obligations, including payments to the Company&#8217;s pension plan, the purchase of inventory/product and general working capital purposes, and (ii) a $1.0 million term loan, at an interest rate of prime plus 6.00% (10.00% and 9.75% at March 31, 2017 and December 31, 2016, respectively), for the purchase of equipment.&#160; The availability under the revolving loan is calculated based on certain percentages of eligible receivables and inventory.&#160; Due to limited availability at the inception of the Credit Agreement, the Company capped the revolving loan at $2.0 million, while reserving the option to remove the cap when needed.&#160; During 2017, the Company paid down $604,000 of the revolving loan and borrowed the remaining $600,000 on the term loan, of which $1.2 million and $940,000, respectively, were outstanding as of March 31, 2017.&#160; Interest under the Credit Agreement is payable monthly in arrears.&#160; The Credit Agreement also requires the payment of certain fees, including, but not limited to a facility fee, an unused line fee and a collateral management fee.</font></p><br/><p style="FONT-SIZE:12pt; FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:line; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="LAYOUT-GRID-MODE:both">The Credit Agreement contains financial and other covenant requirements, including, but not limited to, financial covenants that require the Borrowers to maintain a fixed charge coverage ratio of at least 1.1 to 1.0 and a loan turnover rate of no more than 35 days (or 45 days for certain periods).&#160; The Credit Agreement allows the Company to continue to pay dividends on all its Series B Convertible Preferred Stock (the &#8220;Preferred Stock&#8221;) or any other new preferred stock, if any, which dividends will be excluded as fixed charges until January 12, 2018.&#160; As of March 31, 2017, the Company was in compliance with all financial covenants except the fixed charge coverage ratio, for which the Company&#8217;s ratio was 0.9 to 1.0 for the testing period; the non-compliance was waived by the Lender.</font></p><br/><p style="FONT-SIZE:12pt; FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:line; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="LAYOUT-GRID-MODE:both">The Credit Agreement is secured by substantially all of the Borrowers&#8217; assets and expires July 12, 2019, unless earlier terminated by the parties in accordance with the termination provisions of the Credit Agreement.&#160; The foregoing description of the Credit Agreement is included to provide information regarding its terms.&#160; It does not purport to be a complete description and is qualified in its entirety by reference to the full text of the Credit Agreement.</font></p><br/><p style="FONT-SIZE:12pt; FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; 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height: 13px; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 1pt 0px; border-style: solid none; border-color: windowtext -moz-use-text-color; height: 28px; width: 12%; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">March 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2017</font></p> </td> <td style="border-width: 1pt 0px 0px; border-style: solid none none; border-color: windowtext -moz-use-text-color -moz-use-text-color; height: 13px; width: 2.04%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 1pt 0px; border-style: solid none; border-color: windowtext -moz-use-text-color; height: 28px; width: 12%; white-space: nowrap; padding: 0in;" colspan="2" rowspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">December 31</font></p> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2016</font></p> </td> </tr> <tr style="height: 15px;"> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">In thousands</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2.04%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> </tr> <tr style="height: 15px;"> <td style="height: 15px; width: 70%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">8&#xbc;% Limited convertible senior subordinated notes due 2012</font></p> </td> <td style="height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">387 </font></p> </td> <td style="height: 15px; width: 2.04%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">387 </font></p> </td> </tr> <tr style="height: 15px;"> <td style="height: 15px; 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width: 70%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Term loan &#x2013; related party</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">500 </font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2.04%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; 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height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">243 </font></p> </td> </tr> <tr style="height: 15px;"> <td style="height: 15px; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; 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font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 12%; background: #cceeff none repeat scroll 0% 0%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2,984 </font></p> </td> </tr> <tr style="height: 15px;"> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Net long-term debt</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="border-width: 0px 0px 1pt; border-style: none none solid; border-color: -moz-use-text-color -moz-use-text-color windowtext; height: 15px; width: 12%; white-space: nowrap; 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FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:line; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">As of December 31, 2003, the benefit service under the pension plan had been frozen and, accordingly, there is no service cost.&#160; As of April 30, 2009, the compensation increments had been frozen and, accordingly, no additional benefits are being accrued under the pension plan.</p><br/><p style="FONT-SIZE:12pt; FONT-FAMILY:Courier; LAYOUT-GRID-MODE:line; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:both">The following table presents the components of net periodic pension cost:</font></p><br/><table style="width: 550pt; border-collapse: collapse; margin-left: -0.75pt;" width="733" cellspacing="0" cellpadding="0"> <tr style="height: 15.75pt;"> <td style="border-top: windowtext 1pt solid; height: 15.75pt; border-right: 0px; width: 70%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: windowtext 1pt solid; height: 15.75pt; border-right: 0px; width: 12%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="5" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Three months ended March 31</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">In thousands</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2017</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2016</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Interest cost</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">116 </font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">120 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Expected return on plan assets</font></p> </td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></td> <td style="height: 15pt; width: 12%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">(179)</font></p> </td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></td> <td style="height: 15pt; width: 12%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">(168)</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Amortization of net actuarial loss</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">54 </font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">48 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Net periodic pension cost</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">(9)</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">-</font></p> </td> </tr> </table><br/><p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-family: 'Times New Roman','serif'; layout-grid-mode: both;">As of March 31, </font><font style="font-family: 'Times New Roman','serif';">2017, the Company had recorded a current pension liability of $880,000, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets, and a long-term pension liability of $3.5 million, which is included in Deferred pension liability and other in the Condensed Consolidated Balance Sheets.&#160; The minimum required contribution in 2017 is expected to be $660,000.&#160; </font><font style="font-family: 'Times New Roman','serif'; layout-grid-mode: both;">In 2017, the Company made $220,000 of contributions, all of which was paid subsequent to March 31, 2017.</font></p><br/></div> 880000 3500000 660000 220000 <table style="width: 550pt; border-collapse: collapse; margin-left: -0.75pt;" width="733" cellspacing="0" cellpadding="0"> <tr style="height: 15.75pt;"> <td style="border-top: windowtext 1pt solid; height: 15.75pt; border-right: 0px; width: 70%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: windowtext 1pt solid; height: 15.75pt; border-right: 0px; width: 12%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="5" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Three months ended March 31</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">In thousands</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2017</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="2" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">2016</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Interest cost</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">116 </font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">120 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; 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font-size: 10pt;">&#160;</font></td> <td style="height: 15pt; width: 12%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">(168)</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Amortization of net actuarial loss</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">54 </font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">48 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Net periodic pension cost</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">(9)</font></p> </td> <td style="border-top: 0px; height: 15pt; 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font-family: times new roman,times,serif; color: black;">-</font></p> </td> </tr> </table> 116000 120000 179000 168000 -54000 -48000 -9000 <div style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 12pt; "> <h2 style="FONT-SIZE:12pt; FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:line; PAGE-BREAK-AFTER:avoid; FONT-WEIGHT:bold; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; LINE-HEIGHT:normal">Note 8 <font style="FONT-WEIGHT:normal">&#8211; </font>Loss Per Share</h2><br/><p style="FONT-SIZE:12pt; FONT-FAMILY:Courier; LAYOUT-GRID-MODE:line; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:both">The following table presents the calculation of loss per share for the three months ended March 31, 2017 and 2016:</font></p><br/><table style="width: 550pt; border-collapse: collapse; margin-left: -0.75pt;" width="733" cellspacing="0" cellpadding="0"> <tr style="height: 15.75pt;"> <td style="border-top: windowtext 1pt solid; height: 15.75pt; border-right: 0px; width: 70%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: windowtext 1pt solid; height: 15.75pt; border-right: 0px; width: 12%; border-bottom: 0px; border-left: 0px; white-space: nowrap; padding: 0in;" colspan="5" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: center; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Three months ended March 31</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; 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font-size: 10pt;">&#160;</font></p> </td> <td style="height: 15pt; width: 12%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="height: 15pt; width: 2%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="height: 15pt; 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height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">(0.68)</font></p> </td> </tr> </table><br/><p style="FONT-SIZE:12pt; FONT-FAMILY:Courier; LAYOUT-GRID-MODE:line; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:both">Basic loss per common share is computed by dividing net loss attributable to common shares by the weighted average number of common shares outstanding for the period.&#160; Diluted loss per common share is computed by dividing net loss attributable to common shares, by the weighted average number of common shares outstanding, adjusted for shares that would be assumed outstanding after warrants and stock options vested under the treasury stock method.</font></p><br/><p style="FONT-SIZE:12pt; 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padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">22 </font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Warrant expense</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">-</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 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style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></td> <td style="height: 15pt; width: 12%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">(1,255)</font></p> </td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></td> <td style="height: 15pt; width: 2%; white-space: nowrap; padding: 0in;" valign="bottom"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></td> <td style="height: 15pt; width: 12%; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">(1,117)</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="height: 15pt; width: 70%; background: #cceeff; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Income tax expense</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">-</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; background: #cceeff; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">-</font></p> </td> </tr> <tr style="height: 15pt;"> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 70%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">Net loss</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">$</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 12%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; font-family: Courier; layout-grid-mode: line; text-align: right; margin: 0in 0in 0pt;"><font style="font-size: 10pt; font-family: times new roman,times,serif; color: black;">(1,255)</font></p> </td> <td style="border-top: 0px; height: 15pt; border-right: 0px; width: 2%; border-bottom: windowtext 1pt solid; border-left: 0px; white-space: nowrap; padding: 0in;" valign="bottom"> <p style="font-size: 12pt; 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-476000 -360000 71000 269000 -682000 -872000 <div style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 12pt; "> <h2 style="FONT-SIZE:12pt; FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:line; PAGE-BREAK-AFTER:avoid; FONT-WEIGHT:bold; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; LINE-HEIGHT:normal">Note 12 <font style="FONT-WEIGHT:normal">&#8211;</font> Subsequent Events</h2><br/><p style="font-size: 12pt; font-family: 'Times New Roman','serif'; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;">The Company has evaluated events and transactions subsequent to March 31, 2017 and through the date these Condensed Consolidated Financial Statements were included in this Form 10-Q and filed with the SEC.</p><br/><p style="font-size: 12pt; font-family: 'Times New Roman','serif'; layout-grid-mode: line; text-align: justify; margin: 0in 0in 0pt;">As discussed in Notes 2 and 6, the Company received a waiver of its non-compliance with the fixed charge coverage ratio in the Credit Agreement.</p><br/><p style="FONT-SIZE:12pt; FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:line; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">As discussed in Note 7, subsequent to March 31, 2017, the Company made $220,000 of pension plan contributions.</p><br/><p style="FONT-SIZE:12pt; FONT-FAMILY:&quot;Times New Roman&quot;,&quot;serif&quot;; LAYOUT-GRID-MODE:line; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">As discussed in Note 8, subsequent to March 31, 2017, the Company declared a semi-annual dividend of $6.00 per share of Preferred Stock aggregating $99,000, which was paid on April 21, 2017.</p><br/></div> 6.00 99000 2017-04-21 EX-101.SCH 5 tlx-20170331.xsd XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 001 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS link:presentationLink link:definitionLink link:calculationLink 002 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) link:presentationLink 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Document And Entity Information - shares
3 Months Ended
Mar. 31, 2017
May 11, 2017
Document and Entity Information [Abstract]    
Entity Registrant Name TRANS LUX CORP  
Document Type 10-Q  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   1,710,671
Amendment Flag false  
Entity Central Index Key 0000099106  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Filer Category Smaller Reporting Company  
Entity Well-known Seasoned Issuer No  
Document Period End Date Mar. 31, 2017  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q1  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.7.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 426 $ 606
Receivables, net 2,041 3,118
Inventories 2,157 1,893
Prepaids and other assets 733 671
Total current assets 5,357 6,288
Long-term assets:    
Rental equipment, net 2,813 3,089
Property, plant and equipment, net 2,350 2,292
Goodwill 744 744
Restricted cash 612 612
Other assets 376 389
Total long-term assets 6,895 7,126
TOTAL ASSETS 12,252 13,414
Current liabilities:    
Accounts payable 1,714 1,493
Accrued liabilities 6,434 5,800
Current portion of long-term debt 2,008 2,984
Total current liabilities 10,156 10,277
Long-term liabilities:    
Long-term debt, less current portion 504 57
Long-term debt - related party 500 500
Deferred pension liability and other 3,599 3,856
Total long-term liabilities 4,603 4,413
Total liabilities 14,759 14,690
Stockholders' deficit:    
Preferred Stock Series A - $20 stated value - 416,500 shares authorized; shares issued and outstanding: 0 in 2017 and 2016 and Preferred Stock Series B - $200 stated value - 51,000 shares authorized; shares issued and outstanding: 16,512 in 2017 and 2016 (liquidation preference $3,396,000) 3,302 3,302
Common Stock - $0.001 par value - 10,000,000 shares authorized; shares issued: 1,738,511 in 2017 and 2016; shares outstanding: 1,710,671 in 2017 and 2016 2 2
Additional paid-in-capital 27,935 27,935
Accumulated deficit (25,097) (23,842)
Accumulated other comprehensive loss (5,586) (5,610)
Treasury stock - at cost - 27,840 common shares in 2017 and 2016 (3,063) (3,063)
Total stockholders' deficit (2,507) (1,276)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT 12,252 13,414
Convertible Preferred Stock [Member] | Series A Preferred Stock [Member]    
Stockholders' deficit:    
Preferred Stock Series A - $20 stated value - 416,500 shares authorized; shares issued and outstanding: 0 in 2017 and 2016 and Preferred Stock Series B - $200 stated value - 51,000 shares authorized; shares issued and outstanding: 16,512 in 2017 and 2016 (liquidation preference $3,396,000)
Convertible Preferred Stock [Member] | Series B Preferred Stock [Member]    
Stockholders' deficit:    
Preferred Stock Series A - $20 stated value - 416,500 shares authorized; shares issued and outstanding: 0 in 2017 and 2016 and Preferred Stock Series B - $200 stated value - 51,000 shares authorized; shares issued and outstanding: 16,512 in 2017 and 2016 (liquidation preference $3,396,000) $ 3,302 $ 3,302
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Common Stock, par value (in Dollars per share) $ 0.001 $ 0.001
Common Stock, shares authorized 10,000,000 10,000,000
Common Stock, shares issued 1,738,511 1,738,511
Common Stock, shares outstanding 1,710,671 1,710,671
Treasury Stock, shares 27,840 27,840
Convertible Preferred Stock [Member] | Series A Preferred Stock [Member]    
Preferred stock, par value (in Dollars per share) $ 20 $ 20
Preferred stock, shares authorized 416,500 416,500
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Convertible Preferred Stock [Member] | Series B Preferred Stock [Member]    
Preferred stock, par value (in Dollars per share) $ 200 $ 200
Preferred stock, shares authorized 51,000 51,000
Preferred stock, shares issued 16,512 16,512
Preferred stock, shares outstanding 16,512 16,512
Preferred stock, liquidation preference (in Dollars) $ 3,396,000 $ 3,396,000
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATION (unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Revenues:    
Digital product sales $ 2,580 $ 3,000
Digital product lease and maintenance 497 837
Total revenues 3,077 3,837
Cost of revenues:    
Cost of digital product sales 2,366 2,436
Cost of digital product lease and maintenance 362 526
Total cost of revenues 2,728 2,962
Gross profit 349 875
General and administrative expenses (1,436) (1,838)
Operating loss (1,087) (963)
Interest expense, net (174) (35)
Loss on foreign currency remeasurement (27) (134)
Gain on sale/leaseback transaction 33 22
Warrant expense (7)
Loss before income taxes (1,255) (1,117)
Income tax expense
Net loss $ (1,255) $ (1,117)
Loss per share - basic and diluted (in Dollars per share) $ (0.76) $ (0.68)
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Net loss $ (1,255) $ (1,117)
Other comprehensive income:    
Unrealized foreign currency translation gain 24 134
Total other comprehensive income, net of tax 24 134
Comprehensive loss $ (1,231) $ (983)
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities    
Net loss $ (1,255) $ (1,117)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation and amortization 336 444
Amortization of gain on sale/leaseback transaction (33) (22)
Amortization of deferred financing fees 37
Loss on foreign currency remeasurement 27 134
Amortization of warrants - stock compensation expense 6
Bad debt expense 75 119
Changes in operating assets and liabilities:    
Receivables 1,002 182
Inventories (264) (368)
Prepaids and other assets (49) (106)
Accounts payable 221 (173)
Accrued liabilities 631 580
Deferred pension liability and other (224) (254)
Net cash provided by (used in) operating activities 504 (575)
Cash flows from investing activities    
Proceeds from sale/leaseback transaction 1,100
Equipment manufactured for rental (8)
Purchases of property, plant and equipment (118) (125)
Net cash (used in) provided by investing activities (118) 967
Cash flows from financing activities    
Proceeds from long-term debt 600
Payments of long-term debt (1,136) (333)
Payments for deferred financing fees (30)
Net cash used in financing activities (566) (333)
Effect of exchange rate changes 10
Net (decrease) increase in cash and cash equivalents (180) 69
Cash and cash equivalents at beginning of year 606 547
Cash and cash equivalents at end of period 426 616
Supplemental disclosure of cash flow information:    
Interest paid 127 2
Income taxes paid $ 23 $ 23
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Basis of Presentation
3 Months Ended
Mar. 31, 2017
Disclosure Text Block [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 Basis of Presentation


As used in this report, “Trans-Lux,” the “Company,” “we,” “us,” and “our” refer to Trans-Lux Corporation and its subsidiaries.


Financial information included herein is unaudited, however, such information reflects all adjustments (of a normal and recurring nature), which are, in the opinion of management, necessary for the fair presentation of the Condensed Consolidated Financial Statements for the interim periods.  The results for the interim periods are not necessarily indicative of the results to be expected for the full year.  The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”) and therefore do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”).  The Condensed Consolidated Financial Statements included herein should be read in conjunction with the Consolidated Financial Statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.  The Condensed Consolidated Balance Sheet at December 31, 2016 is derived from the December 31, 2016 audited financial statements.


There have been no material changes in our significant accounting policies during the three months ended March 31, 2017 from the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2016.


Recent Accounting Pronouncements:  In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, Compensation – Retirement Benefits (Topic 715).  ASU 2017-07 improves the presentation of net periodic pension cost and net periodic postretirement benefit cost.  Public business entities should apply the amendments in ASU 2017-07 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years (i.e., January 1, 2018), early application is permitted.  The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.


In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350).  ASU 2017-04 simplifies the test for goodwill impairment.  Public business entities should apply the amendments in ASU 2017-04 for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years (i.e., January 1, 2020), early application is permitted.  The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.


In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230).  ASU 2016-18 modifies the presentation of Restricted Cash on the Statement of Cash Flows.  Public business entities should apply the amendments in ASU 2016-18 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years (i.e., January 1, 2018), early application is permitted.  The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.


In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).  ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases.  A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.  For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.  Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019), early application is permitted.  The Company is in the process of evaluating this pronouncement but has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.


In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) by one year.  As a result, the ASU is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for the Company is the first quarter of 2018.  Earlier application is permitted for fiscal years beginning after December 15, 2016, including interim reporting periods within those years, which for the Company is the first quarter of 2017.  The Company is in the process of evaluating this pronouncement but has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.


XML 17 R8.htm IDEA: XBRL DOCUMENT v3.7.0.1
Going Concern
3 Months Ended
Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Substantial Doubt about Going Concern [Text Block]

Note 2 Going Concern


A fundamental principle of the preparation of financial statements in accordance with GAAP is the assumption that an entity will continue in existence as a going concern, which contemplates continuity of operations and the realization of assets and settlement of liabilities occurring in the ordinary course of business.  This principle is applicable to all entities except for entities in liquidation or entities for which liquidation appears imminent.  In accordance with this requirement, the Company has prepared its accompanying Condensed Consolidated Financial Statements assuming the Company will continue as a going concern.


We do not have adequate liquidity, including access to the debt and equity capital markets, to operate our business.  The Company incurred a net loss of $1.3 million in the three months ended March 31, 2017 and had a working capital deficiency of $4.8 million as of March 31, 2017.  As a result, our short-term business focus continues to be to preserve our liquidity position.  Unless we are successful in obtaining additional liquidity, we believe that we will not have sufficient cash and liquid assets to fund normal operations for the next 12 months.  In addition, the Company’s obligations under its pension plan exceeded plan assets by $4.4 million at March 31, 2017 and the Company has a significant amount due to its pension plan over the next 12 months.  The Company is in default on its 8¼% Limited convertible senior subordinated notes due 2012 (the “Notes”) and 9½% Subordinated debentures due 2012 (the “Debentures”), which have remaining principal balances of $387,000 and $220,000, respectively.  Also, as of March 31, 2017, the Company was not in compliance with the fixed charge coverage ratio covenant related to its Credit Agreement (hereinafter defined), which non-compliance was waived by the Lender.  As a result, if the Company is unable to (i) obtain additional liquidity for working capital, (ii) make the minimum required contributions to the defined benefit pension plan, (iii) make the required principal and interest payments on the Notes and the Debentures and/or (iv) attain and maintain compliance with all debt covenants, there would be a significant adverse impact on the financial position and operating results of the Company.  The accompanying financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amounts and classification of liabilities that may result from the outcome of this uncertainty.  See Note 6 – Long-Term Debt for further details.


The Company is seeking additional financing in order to provide enough cash to cover our remaining current fixed cash obligations as well as providing working capital.  However, there can be no assurance as to the amounts, if any, the Company will receive in any additional financings or the terms thereof and the Company has no agreements, commitments or understandings with respect to any such additional financing.  To the extent the Company issues additional equity securities, it could be dilutive to existing shareholders.  In addition, the Company’s current outstanding debt and other obligations could limit its ability to incur more debt.


XML 18 R9.htm IDEA: XBRL DOCUMENT v3.7.0.1
Inventories
3 Months Ended
Mar. 31, 2017
Inventory Disclosure [Abstract]  
Inventory Disclosure [Text Block]

Note 3 – Inventories


Inventories consist of the following:


 

March 31

2017

 

December 31

2016

In thousands

 

Raw materials

$

1,477

 

$

1,245

Work-in-progress

 

458

   

410

Finished goods

 

222

 

 

238

 Total Inventory

$

2,157

 

$

1,893


XML 19 R10.htm IDEA: XBRL DOCUMENT v3.7.0.1
Rental Equipment
3 Months Ended
Mar. 31, 2017
Rental Equipment [Abstract]  
Rental Equipment [Text Block]

Note 4 – Rental Equipment


Rental equipment consists of the following:


 

March 31

2017

 

December 31

2016

In thousands

 

Rental equipment

$

15,354

 

$

15,354

Less accumulated depreciation

 

12,541

 

 

12,265

Net rental equipment

$

2,813

 

$

3,089


Depreciation expense for rental equipment for the three months ended March 31, 2017 and 2016 was $276,000 and $408,000, respectively.


XML 20 R11.htm IDEA: XBRL DOCUMENT v3.7.0.1
Property, Plant and Equipment
3 Months Ended
Mar. 31, 2017
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]

Note 5 – Property, Plant and Equipment


Property, plant and equipment consists of the following:


 

March 31

2017

 

December 31

2016

In thousands

 

Machinery, fixtures and equipment

$

2,947

 

$

2,839

Leaseholds and improvements

 

35

 

 

25

Property, plant and equipment, Gross

 

2,982

 

 

2,864

Less accumulated depreciation

 

632

 

 

572

Net property, plant and equipment

$

2,350

 

$

2,292


Machinery, fixtures and equipment having a net book value of $2.4 million and $2.3 million at March 31, 2017 and December 31, 2016, respectively, were pledged as collateral under various financing agreements.


Depreciation expense for property, plant and equipment for the three months ended March 31, 2017 and 2016 was $60,000 and $36,000, respectively.


XML 21 R12.htm IDEA: XBRL DOCUMENT v3.7.0.1
Long-Term Debt
3 Months Ended
Mar. 31, 2017
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]

Note 6 Long-Term Debt


Long-term debt consists of the following:


 

March 31

2017

 

December 31

2016

In thousands

 

8¼% Limited convertible senior subordinated notes due 2012

$

387

 

$

387

9½% Subordinated debentures due 2012

 

220

   

220

Revolving credit line

 

1,201

 

 

1,805

Term loans

 

940

   

872

Term loan – related party

 

500

 

 

500

Total debt

 

3,248

   

3,784

Less deferred financing costs

 

236

 

 

243

Net debt

 

3,012

   

3,541

Less portion due within one year

 

2,008

 

 

2,984

Net long-term debt

$

1,004

 

$

557


On July 12, 2016, the Company entered into a Credit and Security Agreement, as subsequently amended on September 8, 2016, February 14, 2017 and March 28, 2017 (collectively, the “Credit Agreement”), with its wholly-owned subsidiaries Trans-Lux Display Corporation, Trans-Lux Midwest Corporation and Trans-Lux Energy Corporation as borrowers (the “Borrowers”) and SCM Specialty Finance Opportunities Fund, L.P. (the “Lender”) as lender.  Under the Credit Agreement, the Company is able to borrow up to an aggregate of $4.0 million, which includes (i) up to $3.0 million of a revolving loan, at an interest rate of prime plus 4.00% (8.00% and 7.75% at March 31, 2017 and December 31, 2016, respectively), for an equipment purchase, repayment of certain outstanding obligations, including payments to the Company’s pension plan, the purchase of inventory/product and general working capital purposes, and (ii) a $1.0 million term loan, at an interest rate of prime plus 6.00% (10.00% and 9.75% at March 31, 2017 and December 31, 2016, respectively), for the purchase of equipment.  The availability under the revolving loan is calculated based on certain percentages of eligible receivables and inventory.  Due to limited availability at the inception of the Credit Agreement, the Company capped the revolving loan at $2.0 million, while reserving the option to remove the cap when needed.  During 2017, the Company paid down $604,000 of the revolving loan and borrowed the remaining $600,000 on the term loan, of which $1.2 million and $940,000, respectively, were outstanding as of March 31, 2017.  Interest under the Credit Agreement is payable monthly in arrears.  The Credit Agreement also requires the payment of certain fees, including, but not limited to a facility fee, an unused line fee and a collateral management fee.


The Credit Agreement contains financial and other covenant requirements, including, but not limited to, financial covenants that require the Borrowers to maintain a fixed charge coverage ratio of at least 1.1 to 1.0 and a loan turnover rate of no more than 35 days (or 45 days for certain periods).  The Credit Agreement allows the Company to continue to pay dividends on all its Series B Convertible Preferred Stock (the “Preferred Stock”) or any other new preferred stock, if any, which dividends will be excluded as fixed charges until January 12, 2018.  As of March 31, 2017, the Company was in compliance with all financial covenants except the fixed charge coverage ratio, for which the Company’s ratio was 0.9 to 1.0 for the testing period; the non-compliance was waived by the Lender.


The Credit Agreement is secured by substantially all of the Borrowers’ assets and expires July 12, 2019, unless earlier terminated by the parties in accordance with the termination provisions of the Credit Agreement.  The foregoing description of the Credit Agreement is included to provide information regarding its terms.  It does not purport to be a complete description and is qualified in its entirety by reference to the full text of the Credit Agreement.


The Company has outstanding $387,000 of Notes which are no longer convertible into common shares.  The Notes matured as of March 1, 2012 and are currently in default.  As of March 31, 2017 and December 31, 2016, the Company had accrued $242,000 and $234,000, respectively, of interest related to the Notes, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Notes outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.


The Company has outstanding $220,000 of Debentures.  The Debentures matured as of December 1, 2012 and are currently in default.  As of March 31, 2017 and December 31, 2016, the Company had accrued $153,000 and $148,000, respectively, of interest related to the Debentures, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Debentures outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.


On April 27, 2016, the Company received a $500,000 loan from Carlisle Investments Inc. (“Carlisle”) at a fixed interest rate of 12.00%, which is due to mature on April 27, 2019 with a bullet payment of all principal due at such time.  Interest is payable monthly.  Mr. Elser, a director of the Company, exercises voting and dispositive power as investment manager of Carlisle.


On September 8, 2016, the Company entered into a credit agreement with BFI Capital Fund II, LLC (the “BFI Agreement”), pursuant to which the Company could borrow up to $750,000 at a fixed rate of interest of 10.00%, with a maturity date of March 1, 2017.  As of December 31, 2016, the outstanding balance was $492,000.  On March 1, 2017, the Company repaid the loan in full and terminated the BFI Agreement.


XML 22 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
Pension Plan
3 Months Ended
Mar. 31, 2017
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block]

Note 7 Pension Plan


As of December 31, 2003, the benefit service under the pension plan had been frozen and, accordingly, there is no service cost.  As of April 30, 2009, the compensation increments had been frozen and, accordingly, no additional benefits are being accrued under the pension plan.


The following table presents the components of net periodic pension cost:


 

Three months ended March 31

In thousands

2017

 

2016

Interest cost

$

116

 

$

120

Expected return on plan assets

 

(179)

   

(168)

Amortization of net actuarial loss

 

54

 

 

48

Net periodic pension cost

$

(9)

 

$

-


As of March 31, 2017, the Company had recorded a current pension liability of $880,000, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets, and a long-term pension liability of $3.5 million, which is included in Deferred pension liability and other in the Condensed Consolidated Balance Sheets.  The minimum required contribution in 2017 is expected to be $660,000.  In 2017, the Company made $220,000 of contributions, all of which was paid subsequent to March 31, 2017.


XML 23 R14.htm IDEA: XBRL DOCUMENT v3.7.0.1
Loss Per Share
3 Months Ended
Mar. 31, 2017
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

Note 8 Loss Per Share


The following table presents the calculation of loss per share for the three months ended March 31, 2017 and 2016:


 

Three months ended March 31

In thousands, except per share data

2017

 

2016

Numerator:

 

 

 

 

 

Net loss, as reported

$

(1,255)

 

$

(1,117)

Change in dividends accumulated on preferred shares

 

(50)

 

 

(49)

Net loss attributable to common shares

$

(1,305)

 

$

(1,166)

Denominator:

 

 

 

 

 

Weighted average shares outstanding

 

1,711

 

 

1,711

Basic and diluted loss per share

$

(0.76)

 

$

(0.68)


Basic loss per common share is computed by dividing net loss attributable to common shares by the weighted average number of common shares outstanding for the period.  Diluted loss per common share is computed by dividing net loss attributable to common shares, by the weighted average number of common shares outstanding, adjusted for shares that would be assumed outstanding after warrants and stock options vested under the treasury stock method.


At March 31, 2017 and 2016, the Company had accumulated unpaid dividends of $93,000 and $72,000, respectively, related to the Preferred Stock.


On April 18, 2017, the Company declared a semi-annual dividend of $6.00 per share of Preferred Stock aggregating $99,000, which was paid on April 21, 2017.


As of March 31, 2017 and 2016, the Company had warrants to purchase 52,000 and 85,300 shares of Common Stock, respectively, outstanding, none of which were used in the calculation of diluted loss per share because their exercise price was greater than the average stock price for the period and their inclusion would have been anti-dilutive.  These warrants could be dilutive in the future if the average share price increases and is greater than the exercise price of these warrants.


As of March 31, 2017 and 2016, the Company had 16,512 shares of Preferred Stock outstanding, which were convertible into 330,240 shares of Common Stock, none of which were used in the calculation of diluted loss per share because their conversion price was greater than the average stock price for the period and their inclusion would have been anti-dilutive.  These shares of Preferred Stock could be dilutive in the future if the average share price increases and is greater than the purchase price of these shares of Preferred Stock.


XML 24 R15.htm IDEA: XBRL DOCUMENT v3.7.0.1
Contingencies
3 Months Ended
Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

Note 9 Contingencies


The Company is subject to legal proceedings and claims which arise in the ordinary course of its business and/or which are covered by insurance.  The Company believes that it has accrued adequate reserves individually and in the aggregate for such legal proceedings.  Should actual litigation results differ from the Company’s estimates, revisions to increase or decrease the accrued reserves may be required.


XML 25 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Related Party Transactions
3 Months Ended
Mar. 31, 2017
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

Note 10 Related Party Transactions


In addition to the Company’s loan from Carlisle described in Note 6, the Company has the following related party transactions:


Yaozhong Shi, a director of the Company, is the Chairman of Transtech LED Company Limited (“Transtech”), which is our primary LED supplier.  The Company purchased $328,000 and $403,000 of product from Transtech in the three months ended March 31, 2017 and 2016, respectively.  Amounts payable by the Company to Transtech were $291,000, $0 and $36,000 as of March 31, 2017, December 31, 2016 and March 31, 2016, respectively.


On June 30, 2016, the Company entered into a 1-year Trademark Licensing Agreement with Transtech, pursuant to which Transtech paid the Company $72,500 upon signing the agreement and will pay the Company a 3% royalty on any equipment sold using the Company’s trademark. There were no such sales in the three months ended March 31, 2017.


XML 26 R17.htm IDEA: XBRL DOCUMENT v3.7.0.1
Business Segment Data
3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 11 Business Segment Data


Operating segments are based on the Company’s business components about which separate financial information is available and are evaluated regularly by the Company’s chief operating decision makers in deciding how to allocate resources and in assessing performance of the business.


The Company evaluates segment performance and allocates resources based upon operating income (loss). The Company’s operations are managed in two reportable business segments: Digital product sales and Digital product lease and maintenance.  Both design and produce large-scale, multi-color, real-time digital displays and LED lighting, which has a line of energy-saving lighting solutions that provide facilities and public infrastructure with “green” lighting solutions that emit less heat, save energy and enable creative designs.  Both operating segments are conducted on a global basis, primarily through operations in the United States.  The Company also has operations in Canada.  The Digital product sales segment sells equipment and the Digital product lease and maintenance segment leases and maintains equipment.  Corporate general and administrative items relate to costs that are not directly identifiable with a segment.  There are no intersegment sales.


Foreign revenues represent less than 10% of the Company’s revenues in 2017 and 2016.  The foreign operation does not manufacture its own equipment; the domestic operation provides the equipment that the foreign operation leases or sells.  The foreign operation operates similarly to the domestic operation and has similar profit margins.  Foreign assets are immaterial.


Information about the Company’s operations in its two business segments for the three months ended March 31, 2017 and 2016 is as follows:


 

Three Months Ended March 31

In thousands

2017

 

2016

Revenues:

 

 

 

 

 

Digital product sales

$

2,580

 

$

3,000

Digital product lease and maintenance

 

497

 

 

837

Total revenues

 

3,077

 

 

3,837

Operating (loss) income:

 

 

 

 

 

Digital product sales

$

(476)

 

$

(360)

Digital product lease and maintenance

 

71

 

 

269

Corporate general and administrative expenses

 

(682)

 

 

(872)

Total operating loss

 

(1,087)

 

 

(963)

Interest expense, net

 

(174)

   

(35)

Loss on foreign currency remeasurement

 

(27)

 

 

(134)

Gain on sale/leaseback transaction

 

33

   

22

Warrant expense

 

-

 

 

(7)

Loss before income taxes

 

(1,255)

   

(1,117)

Income tax expense

 

-

 

 

-

Net loss

$

(1,255)

 

$

(1,117)


XML 27 R18.htm IDEA: XBRL DOCUMENT v3.7.0.1
Subsequent Events
3 Months Ended
Mar. 31, 2017
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

Note 12 Subsequent Events


The Company has evaluated events and transactions subsequent to March 31, 2017 and through the date these Condensed Consolidated Financial Statements were included in this Form 10-Q and filed with the SEC.


As discussed in Notes 2 and 6, the Company received a waiver of its non-compliance with the fixed charge coverage ratio in the Credit Agreement.


As discussed in Note 7, subsequent to March 31, 2017, the Company made $220,000 of pension plan contributions.


As discussed in Note 8, subsequent to March 31, 2017, the Company declared a semi-annual dividend of $6.00 per share of Preferred Stock aggregating $99,000, which was paid on April 21, 2017.


XML 28 R19.htm IDEA: XBRL DOCUMENT v3.7.0.1
Accounting Policies, by Policy (Policies)
3 Months Ended
Mar. 31, 2017
Accounting Policies [Abstract]  
New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements:  In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, Compensation – Retirement Benefits (Topic 715).  ASU 2017-07 improves the presentation of net periodic pension cost and net periodic postretirement benefit cost.  Public business entities should apply the amendments in ASU 2017-07 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years (i.e., January 1, 2018), early application is permitted.  The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.


In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350).  ASU 2017-04 simplifies the test for goodwill impairment.  Public business entities should apply the amendments in ASU 2017-04 for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years (i.e., January 1, 2020), early application is permitted.  The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.


In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230).  ASU 2016-18 modifies the presentation of Restricted Cash on the Statement of Cash Flows.  Public business entities should apply the amendments in ASU 2016-18 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years (i.e., January 1, 2018), early application is permitted.  The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.


In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).  ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases.  A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.  For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.  Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019), early application is permitted.  The Company is in the process of evaluating this pronouncement but has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.


In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) by one year.  As a result, the ASU is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for the Company is the first quarter of 2018.  Earlier application is permitted for fiscal years beginning after December 15, 2016, including interim reporting periods within those years, which for the Company is the first quarter of 2017.  The Company is in the process of evaluating this pronouncement but has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations.

XML 29 R20.htm IDEA: XBRL DOCUMENT v3.7.0.1
Inventories (Tables)
3 Months Ended
Mar. 31, 2017
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current [Table Text Block]

 

March 31

2017

 

December 31

2016

In thousands

 

Raw materials

$

1,477

 

$

1,245

Work-in-progress

 

458

   

410

Finished goods

 

222

 

 

238

 Total Inventory

$

2,157

 

$

1,893

XML 30 R21.htm IDEA: XBRL DOCUMENT v3.7.0.1
Rental Equipment (Tables)
3 Months Ended
Mar. 31, 2017
Rental Equipment [Abstract]  
Rental Equipment [Table Text Block]

 

March 31

2017

 

December 31

2016

In thousands

 

Rental equipment

$

15,354

 

$

15,354

Less accumulated depreciation

 

12,541

 

 

12,265

Net rental equipment

$

2,813

 

$

3,089

XML 31 R22.htm IDEA: XBRL DOCUMENT v3.7.0.1
Property, Plant and Equipment (Tables)
3 Months Ended
Mar. 31, 2017
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment [Table Text Block]

 

March 31

2017

 

December 31

2016

In thousands

 

Machinery, fixtures and equipment

$

2,947

 

$

2,839

Leaseholds and improvements

 

35

 

 

25

Property, plant and equipment, Gross

 

2,982

 

 

2,864

Less accumulated depreciation

 

632

 

 

572

Net property, plant and equipment

$

2,350

 

$

2,292

XML 32 R23.htm IDEA: XBRL DOCUMENT v3.7.0.1
Long-Term Debt (Tables)
3 Months Ended
Mar. 31, 2017
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments [Table Text Block]

 

March 31

2017

 

December 31

2016

In thousands

 

8¼% Limited convertible senior subordinated notes due 2012

$

387

 

$

387

9½% Subordinated debentures due 2012

 

220

   

220

Revolving credit line

 

1,201

 

 

1,805

Term loans

 

940

   

872

Term loan – related party

 

500

 

 

500

Total debt

 

3,248

   

3,784

Less deferred financing costs

 

236

 

 

243

Net debt

 

3,012

   

3,541

Less portion due within one year

 

2,008

 

 

2,984

Net long-term debt

$

1,004

 

$

557

XML 33 R24.htm IDEA: XBRL DOCUMENT v3.7.0.1
Pension Plan (Tables)
3 Months Ended
Mar. 31, 2017
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs [Table Text Block]

 

Three months ended March 31

In thousands

2017

 

2016

Interest cost

$

116

 

$

120

Expected return on plan assets

 

(179)

   

(168)

Amortization of net actuarial loss

 

54

 

 

48

Net periodic pension cost

$

(9)

 

$

-

XML 34 R25.htm IDEA: XBRL DOCUMENT v3.7.0.1
Loss Per Share (Tables)
3 Months Ended
Mar. 31, 2017
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

 

Three months ended March 31

In thousands, except per share data

2017

 

2016

Numerator:

 

 

 

 

 

Net loss, as reported

$

(1,255)

 

$

(1,117)

Change in dividends accumulated on preferred shares

 

(50)

 

 

(49)

Net loss attributable to common shares

$

(1,305)

 

$

(1,166)

Denominator:

 

 

 

 

 

Weighted average shares outstanding

 

1,711

 

 

1,711

Basic and diluted loss per share

$

(0.76)

 

$

(0.68)

XML 35 R26.htm IDEA: XBRL DOCUMENT v3.7.0.1
Business Segment Data (Tables)
3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment [Table Text Block]

 

Three Months Ended March 31

In thousands

2017

 

2016

Revenues:

 

 

 

 

 

Digital product sales

$

2,580

 

$

3,000

Digital product lease and maintenance

 

497

 

 

837

Total revenues

 

3,077

 

 

3,837

Operating (loss) income:

 

 

 

 

 

Digital product sales

$

(476)

 

$

(360)

Digital product lease and maintenance

 

71

 

 

269

Corporate general and administrative expenses

 

(682)

 

 

(872)

Total operating loss

 

(1,087)

 

 

(963)

Interest expense, net

 

(174)

   

(35)

Loss on foreign currency remeasurement

 

(27)

 

 

(134)

Gain on sale/leaseback transaction

 

33

   

22

Warrant expense

 

-

 

 

(7)

Loss before income taxes

 

(1,255)

   

(1,117)

Income tax expense

 

-

 

 

-

Net loss

$

(1,255)

 

$

(1,117)

XML 36 R27.htm IDEA: XBRL DOCUMENT v3.7.0.1
Going Concern (Details) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Going Concern (Details) [Line Items]    
Net Income (Loss) Attributable to Parent $ (1,255,000) $ (1,117,000)
Working Capital Deficit 4,800,000  
Defined Benefit Plan, Funded (Unfunded) Status of Plan (4,400,000)  
8¼% Limited Convertible Senior Subordinated Notes Due 2012 [Member]    
Going Concern (Details) [Line Items]    
Debt Instrument, Debt Default, Amount 387,000  
9½% Subordinated Debentures Due 2012 [Member]    
Going Concern (Details) [Line Items]    
Debt Instrument, Debt Default, Amount $ 220,000  
XML 37 R28.htm IDEA: XBRL DOCUMENT v3.7.0.1
Inventories (Details) - Inventories - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Inventories [Abstract]    
Raw materials $ 1,477 $ 1,245
Work-in-progress 458 410
Finished goods 222 238
Total Inventory $ 2,157 $ 1,893
XML 38 R29.htm IDEA: XBRL DOCUMENT v3.7.0.1
Rental Equipment (Details) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Rental Equipment (Details) [Line Items]    
Depreciation $ 60,000 $ 36,000
Rental Equipment [Member]    
Rental Equipment (Details) [Line Items]    
Depreciation $ 276,000 $ 408,000
XML 39 R30.htm IDEA: XBRL DOCUMENT v3.7.0.1
Rental Equipment (Details) - Schedule Of Rental Equipment - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Schedule Of Rental Equipment [Abstract]    
Rental equipment $ 15,354 $ 15,354
Less accumulated depreciation 12,541 12,265
Net rental equipment $ 2,813 $ 3,089
XML 40 R31.htm IDEA: XBRL DOCUMENT v3.7.0.1
Property, Plant and Equipment (Details) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Property, Plant and Equipment (Details) [Line Items]      
Property, Plant and Equipment, Net $ 2,350,000   $ 2,292,000
Depreciation 60,000 $ 36,000  
Machinery Fixture And Equipment [Member]      
Property, Plant and Equipment (Details) [Line Items]      
Property, Plant and Equipment, Net $ 2,400,000   $ 2,300,000
XML 41 R32.htm IDEA: XBRL DOCUMENT v3.7.0.1
Property, Plant and Equipment (Details) - Property, plant and equipment - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, Gross $ 2,982 $ 2,864
Less accumulated depreciation 632 572
Net property, plant and equipment 2,350 2,292
Machinery Fixture And Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, Gross 2,947 2,839
Net property, plant and equipment 2,400 2,300
Leaseholds and Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, Gross $ 35 $ 25
XML 42 R33.htm IDEA: XBRL DOCUMENT v3.7.0.1
Long-Term Debt (Details) - USD ($)
3 Months Ended
Mar. 01, 2017
Sep. 08, 2016
Jul. 12, 2016
Apr. 27, 2016
Mar. 31, 2017
Dec. 31, 2016
Long-Term Debt (Details) [Line Items]            
Debt Instrument, Interest Rate Terms     prime plus 4.00%      
Debt Instrument, Interest Rate, Effective Percentage         8.00% 7.75%
Line of Credit Facility, Covenant Terms         The Credit Agreement contains financial and other covenant requirements, including, but not limited to, financial covenants that require the Borrowers to maintain a fixed charge coverage ratio of at least 1.1 to 1.0 and a loan turnover rate of no more than 35 days (or 45 days for certain periods). The Credit Agreement allows the Company to continue to pay dividends on all its Series B Convertible Preferred Stock (the “Preferred Stock”) or any other new preferred stock, if any, which dividends will be excluded as fixed charges until January 12, 2018  
Line of Credit Facility, Covenant Compliance         As of March 31, 2017, the Company was in compliance with all financial covenants except the fixed charge coverage ratio, for which the Company’s ratio was 0.9 to 1.0 for the testing period; the non-compliance was waived by the Lender  
Line of Credit [Member]            
Long-Term Debt (Details) [Line Items]            
Line of Credit Facility, Maximum Borrowing Capacity     $ 4,000,000      
Revolving Credit Facility [Member]            
Long-Term Debt (Details) [Line Items]            
Line of Credit Facility, Maximum Borrowing Capacity     3,000,000      
Line of Credit Facility, Current Borrowing Capacity         $ 2,000,000  
Repayments of Lines of Credit         604,000  
Long-term Debt, Gross         $ 1,200,000  
Term Loan [Member]            
Long-Term Debt (Details) [Line Items]            
Line of Credit Facility, Maximum Borrowing Capacity     $ 1,000,000      
Debt Instrument, Interest Rate Terms     prime plus 6.00%      
Debt Instrument, Interest Rate, Effective Percentage         10.00% 9.75%
Long-term Line of Credit         $ 600,000  
Long-term Debt, Gross         940,000  
BFI Agreement [Member]            
Long-Term Debt (Details) [Line Items]            
Line of Credit Facility, Maximum Borrowing Capacity   $ 750,000        
Long-term Debt, Gross           $ 492,000
Debt Instrument, Maturity Date   Mar. 01, 2017        
Debt Instrument, Interest Rate, Stated Percentage   10.00%        
Debt Instrument, Redemption, Description On March 1, 2017, the Company repaid the loan in full and terminated the BFI Agreement          
Carlisle Investment Inc [Member]            
Long-Term Debt (Details) [Line Items]            
Debt Instrument, Maturity Date       Apr. 27, 2019    
Proceeds from Loans       $ 500,000    
Debt Instrument, Interest Rate, Stated Percentage       12.00%    
Debt Instrument, Frequency of Periodic Payment       monthly    
8¼% Limited Convertible Senior Subordinated Notes Due 2012 [Member]            
Long-Term Debt (Details) [Line Items]            
Notes Payable         $ 387,000  
Debt Instrument, Maturity Date         Mar. 01, 2012  
Interest Payable, Current         $ 242,000 234,000
Debt Instrument, Debt Default Payable, Percentage         25.00%  
9½% Subordinated Debentures Due 2012 [Member]            
Long-Term Debt (Details) [Line Items]            
Notes Payable         $ 220,000  
Debt Instrument, Maturity Date         Dec. 01, 2012  
Interest Payable, Current         $ 153,000 $ 148,000
Debt Instrument, Debt Default Payable, Percentage         25.00%  
XML 43 R34.htm IDEA: XBRL DOCUMENT v3.7.0.1
Long-Term Debt (Details) - Long-term debt - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]    
Long-term debt, including current portion $ 3,012 $ 3,541
Less portion due within one year 2,008 2,984
Net long-term debt 1,004 557
Total debt 3,248 3,784
Less deferred financing costs 236 243
8¼% Limited Convertible Senior Subordinated Notes Due 2012 [Member]    
Debt Instrument [Line Items]    
Long-term debt, including current portion 387 387
9½% Subordinated Debentures Due 2012 [Member]    
Debt Instrument [Line Items]    
Long-term debt, including current portion 220 220
Revolving Credit Line [Member]    
Debt Instrument [Line Items]    
Long-term debt, including current portion 1,201 1,805
Term Loan [Member]    
Debt Instrument [Line Items]    
Long-term debt, including current portion 940 872
Related Party Term Loan [Member]    
Debt Instrument [Line Items]    
Long-term debt, including current portion $ 500 $ 500
XML 44 R35.htm IDEA: XBRL DOCUMENT v3.7.0.1
Pension Plan (Details) - USD ($)
Apr. 01, 2017
Mar. 31, 2017
Pension Plan (Details) [Line Items]    
Liability, Defined Benefit Pension Plan, Current   $ 880,000
Liability, Defined Benefit Pension Plan, Noncurrent   3,500,000
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year   $ 660,000
Subsequent Event [Member]    
Pension Plan (Details) [Line Items]    
Defined Benefit Plan, Plan Assets, Contributions by Employer $ 220,000  
XML 45 R36.htm IDEA: XBRL DOCUMENT v3.7.0.1
Pension Plan (Details) - Components of net periodic pension cost - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Components of net periodic pension cost [Abstract]    
Interest cost $ 116 $ 120
Expected return on plan assets (179) (168)
Amortization of net actuarial loss 54 48
Net periodic pension cost $ (9)
XML 46 R37.htm IDEA: XBRL DOCUMENT v3.7.0.1
Loss Per Share (Details) - USD ($)
3 Months Ended
Apr. 21, 2017
Apr. 18, 2017
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Loss Per Share (Details) [Line Items]          
Preferred Stock, Amount of Preferred Dividends in Arrears (in Dollars)     $ 93,000 $ 72,000  
Series B Preferred Stock [Member] | Convertible Preferred Stock [Member]          
Loss Per Share (Details) [Line Items]          
Preferred Stock, Shares Outstanding     16,512 16,512 16,512
Convertible Preferred Stock, Shares Issued upon Conversion     330,240 330,240  
Warrant [Member]          
Loss Per Share (Details) [Line Items]          
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount     52,000 85,300  
Subsequent Event [Member]          
Loss Per Share (Details) [Line Items]          
Preferred Stock, Dividends Per Share, Declared (in Dollars per share) $ 6.00        
Dividends, Preferred Stock, Cash (in Dollars) $ 99,000        
Dividends Payable, Date to be Paid Apr. 21, 2017        
Subsequent Event [Member] | Series B Preferred Stock [Member]          
Loss Per Share (Details) [Line Items]          
Dividends Payable, Date Declared   Apr. 18, 2017      
Preferred Stock, Dividends Per Share, Declared (in Dollars per share)   $ 6.00      
Dividends, Preferred Stock, Cash (in Dollars)   $ 99,000      
Dividends Payable, Date to be Paid   Apr. 21, 2017      
XML 47 R38.htm IDEA: XBRL DOCUMENT v3.7.0.1
Loss Per Share (Details) - Calculation of Loss Per Share - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Numerator:    
Net loss, as reported $ (1,255) $ (1,117)
Change in dividends accumulated on preferred shares (50) (49)
Net loss attributable to common shares $ (1,305) $ (1,166)
Denominator:    
Weighted average shares outstanding (in Shares) 1,711 1,711
Basic and diluted loss per share (in Dollars per share) $ (0.76) $ (0.68)
XML 48 R39.htm IDEA: XBRL DOCUMENT v3.7.0.1
Related Party Transactions (Details) - USD ($)
3 Months Ended
Jun. 30, 2016
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Related Party Transactions [Abstract]        
Related Party Transaction, Purchases from Related Party   $ 328,000 $ 403,000  
Due to Related Parties   $ 291,000 $ 36,000 $ 0
Revenue from Related Parties $ 72,500      
Related Party Transaction, Trademark Licensing Agreement, Royalty Percentage 3.00%      
XML 49 R40.htm IDEA: XBRL DOCUMENT v3.7.0.1
Business Segment Data (Details)
3 Months Ended
Mar. 31, 2017
Business Segment Data (Details) [Line Items]  
Number of Reportable Segments 2
Sales Revenue, Net [Member] | Foreign [Member]  
Business Segment Data (Details) [Line Items]  
Concentration Risk, Percentage 10.00%
XML 50 R41.htm IDEA: XBRL DOCUMENT v3.7.0.1
Business Segment Data (Details) - Business Segment Data - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Revenues:    
Revenues $ 3,077 $ 3,837
Operating (loss) income:    
Operating (loss) income (1,087) (963)
Interest expense, net (174) (35)
Loss on foreign currency remeasurement (27) (134)
Gain on sale/leaseback transaction 33 22
Warrant expense (7)
Loss before income taxes (1,255) (1,117)
Income tax expense
Net loss (1,255) (1,117)
Operating Segments [Member] | Digital Product Sales [Member]    
Revenues:    
Revenues 2,580 3,000
Operating (loss) income:    
Operating (loss) income (476) (360)
Operating Segments [Member] | Digital Product Lease And Maintenance [Member]    
Revenues:    
Revenues 497 837
Operating (loss) income:    
Operating (loss) income 71 269
Corporate, Non-Segment [Member] | Digital Product Lease And Maintenance [Member]    
Operating (loss) income:    
Operating (loss) income $ (682) $ (872)
XML 51 R42.htm IDEA: XBRL DOCUMENT v3.7.0.1
Subsequent Events (Details) - Subsequent Event [Member] - USD ($)
Apr. 21, 2017
Apr. 01, 2017
Subsequent Events (Details) [Line Items]    
Defined Benefit Plan, Plan Assets, Contributions by Employer   $ 220,000
Preferred Stock, Dividends Per Share, Declared (in Dollars per share) $ 6.00  
Dividends, Preferred Stock, Cash $ 99,000  
Dividends Payable, Date to be Paid Apr. 21, 2017  
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